§ Mr. BennettTo ask the Secretary of State for the Environment, Transport and the Regions when he expects the M66 Denton to Heaton Park motorway to be open; which contracts for it are running late and by how much; which contracts have been granted extensions and for what reasons; which contracts have overrun their cost estimates by how much and for what reasons; and when the number 3 Audenshaw reservoir will be back in use. [21102]
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§ Ms Glenda JacksonThe M66 extension from Denton to Middleton is programmed to be open to traffic in the year 2000. Construction is split into 4 Contracts, each of which needs to be complete before the scheme can be fully open to traffic.
Work is either under way or complete on 3 of the contracts and were are currently seeking tenders for the fourth; we hope to start work on this one early next summer with a two year contract period.
The contracts let so far have been in the traditional form of civil engineering contracts published by the Institute of Civil Engineers. This form of contract allows for payment to be made for the actual work undertaken, rather than an estimate at the time of tender, so where additional work becomes necessary, costs will rise.
So far, we know that the tender prices for the three contracts will be exceeded but we cannot yet say by exactly how much because we have not settled final accounts.
The contracts also allow for extensions of time for completion of the works in certain circumstances. On this scheme, the contract periods have so far been extended on Contract 1 by 46 weeks, on Contract 2 by 35 weeks and Contract 4 by 37 weeks to allow for unforseen ground conditions such as the extent of contaminated land and difficulties with statutory undertakers plant. Work has also been delayed by bad weather.
Contract 1 is now expected to be complete in February 2000. Contract 2 was contractually completed this month.
The traditional form of contract can provide good value for money when things work out as planned. There are difficulties, however, and the Highways Agency has been reviewing its procurement strategy and in the future will make use of alternative forms of contract which pass more risk to the contractor. The Agency is also keen to encourage a partnering approach on its contracts. In line with that approach the latest contract is being tendered on the basis of design and build.
The new dam for Audenshaw No. 3 reservoir is being constructed as part of Contract 1. Completion is expected in 1999 when the dam will be handed over to the North West Water who will decide when it will be back in use.