Galliford Try and Balfour Beattie have each settled for payments of around £32 million after reaching agreement with Transport Scotland over the Aberdeen bypass row.
The contractors had been crippled by costs after the £745 million Aberdeen Western Peripheral Route (AWPR) overran and they claimed it would ultimately cost more than £1 billion.
The agreement means Transport Scotland will avoid a court battle over the 36-mile road project, which fully opened almost a year late in February 2019. It was delayed by the weather and the collapse of construction firm Carillion, a partner in the project.
Galliford Try said it expects to receive a cash payment of around £32 million and incur a write-off of £52 million. “The settlement brings to a conclusion a complex and challenging project, averting a lengthy and costly litigation process,” the company said in a statement. The settlement also removes a significant distraction and uncertainty, allowing the construction business to focus on its core business, current and new projects.”
A Transport Scotland spokesman said it had reached a “strictly commercial settlement with no admission of liability by either party”. “The detailed terms of this settlement are now being developed between the parties as quickly as possible. Due to this ongoing legal discussion, it would be inappropriate to comment on the terms of the settlement at this time,” he said.
“As the first anniversary of the full opening of the Aberdeen Western Peripheral Route/Balmedie to Tipperty project approaches, it is important to recognise the transformational effect this project has had on people’s daily lives in the north east, as evidenced through the widespread public support for the completed project.
“These effects have been seen in reduced and more reliable journey times; reduced congestion and hence improved public transport reliability as well as opportunities for future service expansion; and more people experiencing improved air quality and lowered levels of road traffic noise.
“Overall, the benefits of the project are plain for everyone to see, as it improves quality of life and supports the wider economy as a whole.”
