'Contractual dispute' fuelling controversial A46 bridge delays near Kenilworth - councillors to be updated behind closed doors

A report put together by the West Midlands Combined Authority (WMCA) at the request of its investment board – it has put £6.6 million into the project – cited a “contractual dispute” on top of previously acknowledged problems with sourcing some materials.

It relates to the delayed new roundabout to straddle and serve the A46 at Stoneleigh Junction and comes ahead of a behind-closed-doors briefing for members of Warwickshire County Council's cabinet – the panel of Conservative councillors in charge of major service areas – on Thursday.

Councils are granted scope to hold commercially sensitive discussions in private but the WMCA papers have shed a little light.

The report says the county has "initiated a design review to identify alternative options that would resolve the supply issues" before issuing a stark warning over the financial implications.

“The contractual dispute and the resulting delays to the completion of the scheme will inevitably have an impact upon the scheme budget," it continues.

"The grant funding secured from both the DfT (Department for Transport) and the WMCA have been fully spent, so the cost of scheme completion will be met by WCC from its budget contribution towards the scheme cost.

“Any overspend against the original scheme budget will need to be met by WCC under the terms of the grant funding agreements.”

The £38 million project, announced in December 2020, was due to be completed by the summer of 2022 but work has now been delayed for longer than it was due to last for.

Warwickshire County Council has acknowledged an anticipated cost overrun of £4.6 million. Papers published in September stated that the team behind the project was “exploring various options” with the overspend set to be “materially impacted by the adjudication decision about a number of complex issues”.

It added: “Corporate board will consider the risks associated with the scheme in light of the adjudication decision and a further report will be brought to members as soon as possible.”

The WMCA report also highlights that the county council would be responsible for paying back grants if the project does not get completed, although that prospect “is considered unlikely”, particularly as there are further phases in the pipeline, some of which are to provide connectivity to large housing developments.

The page dedicated to A46 updates on the county council’s website refers to the issue of sourcing materials but not any contract disputes.

"It says an anticipated completion date will be provided “in due course” but the WMCA reports that the county’s current estimate is that the junction “will be opened to traffic in mid-2025” – later than the most recent December 2024 target.