Artists Impression Of What A New Pedestrianised Square In Clay Cross Might Look Like, Courtesy Of North East Derbyshire District Council
Report by Local Democracy Reporter – Jon Cooper
A construction company has expressed its disappointment with a Derbyshire council’s announcement that the contractor’s attempt to terminate a contract involving a multi-million pound regeneration scheme was invalid and that no additional payment is due to the contractor.
Inside Limited ceased carrying out works in February at Clay Cross town centre’s regeneration scheme for the new Bailey Square, near Market Street, overseen by North East Derbyshire District Council, over what the contractor cited to be ‘ongoing contractual and financial disputes’ with the council after key elements were unable to proceed and ‘the contractual and financial position had become untenable’.
But on June 2 the council announced that an adjudicator’s decision that no additional payment is due to the contractor confirmed that the contractor’s attempt to terminate the contract was invalid, that the council’s subsequent termination was valid and that the majority of the contractor’s financial claims were not proven.
However, Inside Limited has stated that it ‘strongly disputes aspects of the narrative currently being presented’ by the council claiming it presents an incomplete picture of the project and the issues encountered during the scheme’s delivery.
An Inside Limited spokesperson said: “Inside Limited is disappointed by the statement issued by NE Derbyshire District Council and believes it presents an incomplete picture of the project and the issues encountered during delivery.
“While the recent adjudication did not determine all matters in dispute, the adjudicator did make a number of important findings in relation to delays and valuation issues affecting the project.”
The council stated that an adjudicator assessed the value of the works carried out and concluded that the contractor had already been paid and as a result no further payment was awarded.
It added that while the adjudicator identified limited delays on some parts of the project no additional payment was made because the contractor did not provide evidence to support claims for loss and expense.
However, an Inside Limited spokesperson said: “Inside Limited strongly disputes aspects of the narrative currently being presented publicly.”
The company stated the the adjudicator made a number of important findings in relation to delays, extensions and valuation issues affecting the project.
Inside Limited claims these findings included that: Block B was never released to Inside Limited and no instruction to proceed was issued, resulting in an extension of time being awarded up to termination; Possession of the Section 6 Market Street works was delayed with the adjudicator awarding an extension of time to April 27; Permanent power supplies for Sections 1 and 2 were not due to be installed until after the contractual completion dates with extensions of time awarded; And that extensions of time should have been granted for Sections 1, 2, 4 and 6, contrary to the previous position maintained by the council.
Inside Limited added the adjudicator also rejected substantial elements of the council’s later valuation assessments and preferred earlier valuations prepared by the employer’s agent, noting that the employer’s agent had physically inspected the works whereas later assessments were largely desktop based.
The company added that the adjudicator also increased allowances relating to preliminaries, design fees and a number of variation items which had previously been reduced or disallowed.
An Inside Limited spokesperson said: “Inside Limited worked on this regeneration project for a prolonged period under extremely challenging circumstances and continued attempting to deliver the scheme despite ongoing issues relating to possession, utilities, design development and changing project requirements.
“Throughout the project, Inside Limited repeatedly raised concerns regarding inconsistent instructions, changing positions and conflicting information being issued by members of the council’s professional team. These issues created significant uncertainty around programme, coordination and delivery of the works. Block B, in particular, became a clear example of these ongoing difficulties.
“Inside Limited made numerous attempts throughout the project to resolve matters amicably and collaboratively. However, the council instead chose to adopt an increasingly legalistic approach to the administration of the contract.
“The council’s original project manager subsequently left the project, and the council itself acknowledged that this change and the surrounding circumstances caused significant disruption to project delivery.”
The Inside limited spokesperson added: “Given the adjudicator awarded extensions of time across multiple sections of the project, the suggestion that only ‘minor delays’ occurred appears difficult to sustain. The adjudicator’s findings perhaps present a more balanced picture of the project difficulties than the council’s recent public statement.”
Inside Limited says it has successfully delivered more than £80 million of construction projects across the UK during its trading history and remains proud of the efforts of its employees, subcontractors and supply chain partners.
But it added that the financial pressures arising from this project placed the company under severe strain and ultimately contributed to the company ceasing trading at the site.
The Inside Limited spokesperson said: “As further contractual and legal matters remain ongoing, it would not be appropriate to comment further in detail at this stage.
“However, Inside Limited strongly disputes aspects of the narrative currently being presented publicly and reserves all rights in relation to the final account and associated matters.”
The council stated that it takes its responsibility to protect public money very seriously and welcomes the clarity provided by the independent adjudication and it aims to move forward with procuring a new contractor to complete the project.
A council spokesperson said: “We recognise the strength of feeling locally following the contractor leaving the site and the impact this has had on residents and businesses. Our focus remains on completing the scheme and delivering the benefits for Clay Cross.
“The project is a major investment in Clay Cross, aimed at supporting local businesses, improving the town centre environment and creating a place that residents can be proud of.
“Because adjudication proceedings are confidential, the council is limited in the level of detail it can share. However, it will continue to provide clear and factual updates where possible.”
The Labour-controlled council announced the appointment of Inside Limited for the Town Centre Regeneration project in March, 2024, as part of an overall Government-funded £24.1m Clay Cross Town Deal regeneration scheme for the town welcomed by a Clay Cross Town Deal Board with representatives from the council and other interested parties.
Work on the overall Clay Cross Town Deal scheme features four main parts including plans for the town centre location – called Bailey’s Square – which still aims to be part of a redeveloped area supporting a day and night time economy for residents and businesses.
Plans for the new town square feature a multi-function open space, greenery, a refurbished heritage building, and flexible business units for independent enterprises and street food outlets linked to an improved Market Street, Bridge Street and Smithy Street but some changes may now be necessary.
The four parts of the Clay Cross Town Deal include plans for the new revitalised town square, as well as food, beverage and leisure units along the route from Broadleys to the town square, a Derbyshire Adult Education Centre called the Clocktower, and plans to re-purpose an historic building with food, drink and leisure opportunities.
Businesses have been concerned after claiming erected construction barriers had reduced passing footfall due to town centre pedestrianisation works which had shown no sign of getting underway.
Circumstances for residents and businesses have been further compounded by diverted traffic linked to the pedestrianisation of Market Street causing congestion on roads.
The opening of a new Clay Cross Active leisure centre as part of the overall Town Deal regeneration plans was also delayed until last summer after subsidiaries of the original contractor ISG fell into administration before a new contractor Universal Civils and Build stepped in to complete this project by June, last year.
