Rampant inflation means a significant highway undertaking within the South West will value £5m extra, regardless of being diminished in scope and taking longer to finish.
Devon County Council has signed an modification with Alun Griffiths to pay the contractor 13 per cent greater than initially agreed for a slimmed-down package deal of works to improve the A361.
The native authority has additionally pushed again the deadlines to finish key phases.
Welsh civils contractor Griffiths secured a £40.8m deal in November 2020 to widen sections of the North Devon Hyperlink Highway between Portmore Roundabout and Filleigh Slicing.
Designed to enhance native, regional and cross-country connectivity by boosting hyperlinks from the M5 to the coast, the undertaking was due for completion on the finish of this yr.
However now the council has mentioned last works won’t be completed earlier than March 2024.
It added {that a} 1.5km stretch of overtaking lane had been slashed from the undertaking, together with components resembling fencing alternative.
Regardless of these adjustments, estimated to save lots of Griffiths £4.7m, the price of the general contract has risen to £46.2m.
The council mentioned inflation had risen “dramatically” within the two years since costs have been agreed.
“In relation to many elements of the works, inflation has hit 25 per cent,” mentioned Devon County Council in an official contract discover. “The extent of those inflationary rises couldn’t have been foreseen.
“In response, the council has agreed to a comparatively modest discount within the scope of the works, which can end in financial savings to the contractor of round £4.7m.
“The council has additionally agreed to a 13 per cent total improve within the worth paid to the contractor.”
Griffiths has been contacted for remark.