§ Mr. MaxtonTo ask the Secretary of State for Scotland if the Government has changed the penalties to be applied for failing to meet contractual obligations on the contract to upgrade the A74 between Eaglesfield and Kirkpatrick Fleming to motorway standard. [32713]
§ Lord James Douglas-HamiltonThe application of liquidated damages, which are not penalties, are being applied strictly in accordance with their purpose in the contract.
The liquidated damages provisions relate to two parts of the works. Those provisions related to the southern section, which can be open to traffic as and when it is ready, remain unchanged. Those related to the northern section, which cannot be open to traffic until the adjacent contract is complete, are now no longer relevant. Their purpose was to cover the Secretary of State against any claim by the adjacent contractor for delay in handing over the northern section which is necessary to provide access for him to construct his adjacent section. The adjacent contractor has now waived all such claims against the Secretary of State as he is now acting as sub-contractor to Castelli-Girola for the northern section. Consequently, there is now no justification for the application of liquidation damages against Castelli-Girola by the Secretary of State for the northern section.
§ Mr. MaxtonTo ask the Secretary of State for Scotland if he will make a statement on the progress of the project to upgrade the A74 between Eaglesfield and Kirkpatrick Fleming to motorway standard; and what penalties have been applied to Castelli-Girola for failing to meet their contractual obligations on this project. [32712]
§ Lord James Douglas-HamiltonThe southern section of the works that should have been open to traffic at the end of last year has now been granted a partial substantial completion certificate and is open to traffic. This section of the works is subject to the deduction of liquidated damages for failure to deliver the road in due time. The extent of the damages will be determined by the contract and will be subject to any contractually agreed extensions of time.
§ Mr. MaxtonTo ask the Secretary of State for Scotland what are the costs to public funds of the delays in the work to upgrade the A74 between Eaglesfield and Kirkpatrick to motorway standard. [32714]
§ Lord James Douglas-HamiltonThe delays in completing the upgrade of the A74 Eaglesfield to Kirkpatrick Fleming section to motorway standard has not caused any additional public expenditure; nor have public funds suffered any loss.