Contractor for Tullamore public realm work paid over two million euro more than original agreed sum

IT'S emerged that differences between Offaly County Council and payment to the main contractor for Tullamore public realm enhancement works resulted in an adjudicator being appointed to facilitate an agreed figure between both parties. That figure was over two million euro more than the original sum sought by the contractor.

The details are outlined in an Audit Report to Offaly County Council prepared by the Department of Housing, Local Government and Heritage (DHLGH) for the year ending December 2021 which was published last week.

The phased public realm project included improvement works to High St, Bridge St, Columcille St, Millennium Square and O’Connor Square. It involved the undergrounding of overhead wires together with the removal of poles. Footpaths were replaced and widened at particular locations. Road reconstruction and surfacing was also undertaken.

The main contractor for the enhancement works was appointed in December 2018 and the tender amounted to €3.2m excluding VAT.

Agreements were signed in July 2019 between Irish Water and the Council and between Irish Water, Offaly County Council and the contractor for combined sewer works to be included in the project at an additional sum of €380,000. Irish Water agreed to pay Offaly County Council to have these additional works completed on its behalf.

According to the report the conflict arose following delays and additional works to the project for which ''the contractor submitted claims in excess of the agreed contract price.''

An adjudicator was appointed on June 3, 2021 under the Construction Contracts Act of 2013.

In November 2021 a full and final settlement agreement was signed by both parties for an agreed contract sum of €5.3m which included works by Irish Water

The debit balance remaining on the capital account in respect of this project amounted to €531,000 in 2021.

Responding to this audit the Chief Executive of Offaly County Council, Anna Marie Delaney said ''the final contract cost was disputed by Offaly County Council and included a substantial adjudication award. Additional agreed costs included works that were requested and funded by Irish Water post tender, additional works that were required to enhance linkages to the Greenway following post tender allocations from the URDF (urban regeneration and development fund) and also due to unforeseen ground conditions.''

Work on the public realm encountered many delays. Target dates for the finalisation of different aspects of the project were missed and difficulties arose when a number of eir chambers had to be rebuilt prior to road surfacing and a cluster of underground services were uncovered at the Patrick Street junction.

Covid also hit at that time and work was temporarily halted. Retailers became more annoyed and frustrated as the entrances into their premises were restricted and roads partially blocked.

Work on the public realm is now complete. Further works are planned for Harbour street and Store Street in Tullamore.