Balfour Beatty will complete a Carillion road project in Leeds worth £115m while Galliford Try will take on a £120m highways job in Lincolnshire, the projects’ clients have confirmed.
Balfour has been announced as the contractor for the first two phases of the £115m East Leeds Orbital Road (ELOR) project by Leeds City Council.
Work on phase one of the bypass is scheduled to commence in summer 2018 and take 15 months to complete.
The second phase is due to start in late 2019, though the local authority said this timeframe was subject to statutory approvals and land acquisition.
Lincolnshire County Council meanwhile has appointed Galliford Try on a permanent basis to complete its Lincoln Eastern Bypass, after the contractor was initially brought in on a temporary basis following Carillion’s collapse.
The council also revealed that the contractor’s liquidation had contributed to costs on the eastern bypass rising from £96m to £120m and delayed the project’s completion to May 2020.
Lincoln executive member for highways Richard Davies said: “Since taking over from Carillion, Galliford has made great progress on site, so we’re excited to continue building this relationship as they oversee all of the milestones to come, including the construction of four new roundabouts, two major bridges and 7.5 km of new road.
“There are always unknowns when taking on a project of this scale, but we now have a much clearer picture of where the project stands.
“At this stage, the total cost of the project is now expected to be £120m, with about half the new costs coming as a result of changing contractor and the remainder from additional archaeological spend, additional land acquisition costs and inflation.
“Another outcome of Carillion’s collapse is that the scheme’s new expected completion date is May 2020.
“By exploring all options and focusing our efforts on getting the best value for money, we’ve been able to keep the time delay to a minimum, despite the situation we were cast into.”
The council said it will be covering the extra cost of the project itself but would be applying for funds to compensate this expense from the Department for Transport and Historic England.