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Report says £1.9m overspend caused by council mistakes

THE £1.9m overspend on a town's new link road was caused by a number of management errors by a council, an independent report has revealed.

But bosses at Darlington Borough Council said last night the problems would not be repeated because an in-house management restructuring has taken place.

No disciplinary action is to be taken against officers.

Opposition councillors last night blamed the cabinet member in charge of transport for the problems.

The council announced in November that the cost of the Eastern Transport Corridor - linking the A66 to Haughton Road - had rocketed by 15 per cent from £12.5m to £14.4m.

The authority's cabinet committee ordered an independent inquiry and EC Harris - a Billingham-based firm of construction consultants - was paid £22,000 to carry it out.

The results, published yesterday, reveal a series of management mistakes, including:

Licences for the removal of protected newts were not obtained in time - which led to a four-month delay in the start date;

Construction firm Birse was awarded the contract before a price for the costs incurred by the delay was agreed;

The budget did not include compensation claims - which could total £600,000 - that could be made by residents whose house prices were adversely affected by the works;

Alterations to service lines such as gas and electricity could cost £872,000 more than expected;

The cost of traffic signals increased by £300,000.

The report finds that the council could have saved money when great crested newts were discovered at the site.

It states: "The work could have been re-tendered and, if it had, the council would have had certainty that it was committed to a competitive price for the works."

The report also concludes that council staff should receive more training in handling contract negotiations.

"We recommend that if the council decides to use this contract in future, it either undertakes appropriate training or engages professional assistance to advise on its more onerous elements that would affect the council's liabilities," the consultants said.

The council's chief executive, Ada Burns, said that £1.9m was the maximum the council expects to pay over the budget, and she was confident the final cost would be lower.

She said a management restructuring in autumn last year, in which a new senior post of assistant director - highways was created, had addressed many of the faults highlighted by the report.

"There were no surprises in the report," she said.

"In many ways, this has told us what we knew - which is something we have dealt with in terms of our overall structure last autumn.

"The report has not identified any particular fault on the part of individuals. This project evolved over many years, and many of the officers are no longer with the council, so there is nothing to be achieved by a disciplinary investigation."

Conservative councillor Charles Johnson and the Liberal Democrat Martin Swainson blamed the Labour cabinet member for transport, Councillor David Lyonette, for the problems.

Councillor Johnson said the spiralling costs, and the overspend on the town's Pedestrian Heart project, were both the responsibility of Coun Lyonette's department.

"Clearly there are management problems, but there are also cabinet member problems," he said.

"Coun Lyonette is the cabinet member responsible. It is all happening on his watch."

Coun Swainston said: "I am absolutely fuming about this.

"The buck always stops with the elected member. It all comes back to Coun Lyonette - he is responsible for green-lighting things like this and he has been found seriously wanting."

Coun Lyonette said last night: "Some of the particular problems on this project stem from many years ago. It goes back a long way - long before my time as a cabinet member.

"Members are not being criticised in this report, the faults were with the organisation and the structure of the council.

"The Eastern Transport Corridor job is on time, it has been efficiently handled and it looks like a quality job."

Councillor John Williams, leader of the council, said: "These findings make it clear that the council's capacity to manage a project of this nature needed to be strengthened and officers have done this.

"But it is clear that we must do better in future."

The council is still waiting to hear if the Department for Transport will grant more funding for the scheme.

The report will be discussed at a meeting of the council's resources scrutiny committee on May 1

2:03am Thursday 24th April 2008

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Posted by: Peter Dolan, Newton Aycliffe on 10:31am Thu 24 Apr 08
Well it looks as though the council has turned it into a 'empire building' exercise with more cost for the council taxpayer, instead of getting rid of those responsible for the over-run they take on someone else to supervise them. Like our MPs who rake in un-controlled expenses councillors look upon the council tax as a bottomless pit.
Posted by: john, darlington on 11:22am Thu 24 Apr 08
Darlington Council have done it again, memories of the Dolphin Centre fiasco some years ago. The so called Eastern Transport Corridor is only moving traffic roblems from one area to another,it is also just a stealthy link into the coming Cross Town Route (unannounced)going towards the new route intended past North Road Station, along the line of Whessoe Road to join the already constructed road end within the Faverdale Estate and on past the resedential area to the A68 and the Motorway.
The damming report highlights the pathetic abilities of long time councillors who should now give way (as would happen in a Company failure).
we don't have an Election pending but this can be remembered for the next one.
The £1.9M reported is no more than a guess we shoud be prepared for a larger amout to be requiredof us via the council tax or a reduction of other services
Posted by: Brian, Darlington on 3:02pm Thu 24 Apr 08
It is so reassuring that Ada Burns is confident that the maximum overspend will only be 1.9 MILLION POUNDS, this is what you get when council amateurs are left to play with council tax payers money. In the real world if any employee’s had been so incompetent and lost a company that amount of money it would be a P 45 not more training they would be getting.

It was also refreshing to see that Councilor Lyonette and Councilor Williams have not lost there political skill in not accepting any responsibility.

Time to clear the decks of the self back-slapping club and have some real professional accountable people, who know what they are doing.
Posted by: Anon, Tees Valley on 3:09pm Thu 24 Apr 08
The electricity services mentioned in the report have had to be relocated twice - once to move them clear of the position of the new road, and again because an embankment was built by the road-builders over the new cables, making them inaccessible. Expensive incompetence.
Posted by: Paul, Darlington on 4:11pm Thu 24 Apr 08
Two million quid down the toilet and no-one's to blame. How predictable. How typical. This just confirms that town halls are full of people who are too useless to to get proper jobs.
And to think it costs me 120 quid a month and more in council tax to keep these incompetents in jobs, allowances and gold-plated pensions........
Posted by: Gill Cartwright, Harrowgate Hill on 9:00pm Thu 24 Apr 08
1.9 million pound overspend and our pensioners cant travel free before 9.30am.
Posted by: Kathleen Boden, Darlington on 10:04pm Thu 24 Apr 08
And what happened to those poor folks who ended up with a road going past their bedroom windows because someone "made a mistake". Guess it doesn't matter unless you live in a posh house.
Posted by: Martin, Darlington on 10:37pm Thu 24 Apr 08
Kathleen

No one will have a road "going past their bedroom windows". The distance between the road and the nearest houses is two and a half times the distance between some of the rows of houses on Red Hall. The stretch of road in question is also below first floor level.
Posted by: Michael, USA on 12:29am Fri 25 Apr 08
A Darlington Borough Council Officer was seated next to a little girl on the airplane
when the he turned to her and said, 'Let's talk. I've heard that flights go quicker if
you strike up a conversation with your fellow passenger.'

The little girl, who had just opened her book, closed it slowly and said to the officer,
'What would you like to talk about?'

'Oh, I don't know,' said the officer. 'How about the Eastern Transport Corridor in
Darlington?' and smiles.

'OK, ' she said. 'That could be an interesting topic. But let me ask you a question
first. A horse, a cow, and a deer all eat the same stuff - grass - . Yet a deer excretes
little pellets, while a cow turns out a flat patty, and a horse produces clumps of dried
grass.
Why do you suppose that is?'

The officer, visibly surprised by the little girl's intelligence, thinks about it and
says,
'Hmmm, I have no idea.'

To which the little girl replies, 'Do you really feel qualified to discuss Transport
Corridors, when you don't know ****?
Posted by: Chris, Darlington on 3:28am Fri 25 Apr 08
Martin wrote:
Kathleen No one will have a road \"going past their bedroom windows\". The distance between the road and the nearest houses is two and a half times the distance between some of the rows of houses on Red Hall. The stretch of road in question is also below first floor level.
Martin

One thing about this, though, is that the road was built up above the original planned level along a stretch parallel to Red Hall - 7 feet higher than planned, in all honesty - which does actually put it level with first floor windows of houses opposite. Just what you want to see when you open your curtains on a morning!
Posted by: harry, darlington on 7:17am Fri 25 Apr 08
i dont really understand the need for this road ,
and i thought we all paid road tax for this very reason so im not sure why the local council is funding it. projects like this should be supported by govermet and not small town councils.
Posted by: Ernest, darlington north on 7:56am Fri 25 Apr 08
re harry's question of need for road - there isn't a justified need - its explained in comment no. 2 above by john.
Can we expect the offending councillors reply to any of these comments - highly unlikely - they be so busy planning the next overspend.
Hopefully The Northern Echo will publish our comments.
Posted by: louise, haughtonrd.near24hrg arage on 8:45am Fri 25 Apr 08
sum1 admit they made mistakes and move on.all i hear is apologies 2 the motorist not 2 the non polluters like myself,my partner and daughter age 1 and half.unlike being held up in traffic 4 twenty mins we livin this 24-7
Posted by: miketually, Darlington on 9:25am Fri 25 Apr 08
Harry, local roads are paid for by the Council, who get some money from central government and some from Council Tax.

Taxes in this country are not ringfenced for particular things, so 'Road Tax' (it's actually not called this) doesn't pay for the roads, everyone does.

Having looked out at the road from a bedroom window on Red Hall, it's a lot closer than you would think and I'm glad I don't live there. I hope people realise they can claim compensation for the fall in their house prices because of the road...

We'll have to wait and see if the new road reduces congestion through Haughton village and on Haughton Road, but I very much doubt that it will.
Posted by: Brian, Darlington on 10:42am Fri 25 Apr 08
I would like to point out that the amount of road tax paid by motorist's in this country far exceeds the amount spent on the roads. The extra revenue gained from the rosd tax is spent on health, education, housing, enviroment and even cycle lane's.
Posted by: miketually, Darlington on 10:54am Fri 25 Apr 08
"I would like to point out that the amount of road tax paid by motorist's in this country far exceeds the amount spent on the roads"

That's debatable. Once you factor in lost business due to congestion, the health impact of pollution and less active lifestyles, the cost of road deaths, environmental impact, safety measures (like screens and cycle lanes) and all the other hard to quantify costs of motoring, some have suggested petrol would need to be increased to £15 a litre to cover the true cost of motoring.

That's probably a debate for another time, however.
Posted by: Brian, Darlington on 11:17am Fri 25 Apr 08
"Once you factor in lost business due to congestion, the health impact of pollution and less active lifestyles, the cost of road deaths, environmental impact, safety measures (like screens and cycle lanes) and all the other hard to quantify costs of motoring"

Lets take a step back and use horse and carts and really slow down business.
For an average road tax bill of 170 pounds per car that is a lot of tarmac
Posted by: miketually, Darlington on 11:41am Fri 25 Apr 08
"Lets take a step back and use horse and carts and really slow down business."

Where did I suggest we do that?

When a car, van or truck is stuck in traffic, there is a cost to the business.

If there were less unecesary vehicles on the roads, these vehicles wouldn't be caught up in the congestion.

So, congestion costs the economy money.

Having said that, the average speed for a car journey in london is 12MPH. I bet that a horse and cart through uncongested street could just about manage that!
Posted by: miketually, Darlington on 12:13pm Fri 25 Apr 08
"For an average road tax bill of 170 pounds per car that is a lot of tarmac"

The ETC is going to cost £9.6million per mile. That's the car tax from 56,000 cars, per mile! 85,000 cars' tax for the whole road.

I'm sure it'll be worth it...
Posted by: Brian, Darlington on 4:06pm Fri 25 Apr 08
"COOL your Turbo" miketually, I am only playing with you.

The serious point of this article is the lack of responsibility and honor shown by the faceless bruro-crats whom waste so much council tax money, for example:- The construction of the Dolphin Centre, the Cornmill Centre, the Town Centre Predestination, the Eastern Transport Corridor and I predict the next one will be the “New Oval Centre”
Lets be honest, this Council and Construction are like oil and water, they do not Mix.
I suggest forget about the extra training and use an accountable professional private contracting company for any future major projects.
Posted by: billy, darlington on 8:49am Sat 26 Apr 08
iread the answers from martin and he sounds like the designer who dropped these large clangers in the first place thats the way he spoke to people at the residents meetings and he still employed
Posted by: billy, darlington on 9:06am Sat 26 Apr 08
darlington concils records over the years
1960s shepherds plan bailed out last minute costly
late 60s early 70s darlingtons first road to nowhere the inner ring road not finished the cause of darlingtons congestion ton this date
the dolphin centre fiasco
the only pedestrian heart possiblyin country where bus route goes through the middle over spent worst workmanship in possibly the world
last of all THE SECOND ROAD TO NOWHERE 2 MILLION POUND IN DEBT STRAIGHT AWAY blaming the poor newts who cant defend themselves.the top executive in council saying it wont be that much then in the next breath asking dept. for more funding. ithink if the top bods dont know what is going on we must call for a change at the very top.sooner than later
Posted by: billy, darlington on 9:06am Sat 26 Apr 08
darlington concils records over the years
1960s shepherds plan bailed out last minute costly
late 60s early 70s darlingtons first road to nowhere the inner ring road not finished the cause of darlingtons congestion ton this date
the dolphin centre fiasco
the only pedestrian heart possiblyin country where bus route goes through the middle over spent worst workmanship in possibly the world
last of all THE SECOND ROAD TO NOWHERE 2 MILLION POUND IN DEBT STRAIGHT AWAY blaming the poor newts who cant defend themselves.the top executive in council saying it wont be that much then in the next breath asking dept. for more funding. ithink if the top bods dont know what is going on we must call for a change at the very top.sooner than later
Posted by: billy, darlington on 9:12am Sat 26 Apr 08
sorry i forgot about the football stadium where they tld george reynolds he was not allowed to hold concerts or car boot sales but now they decide this nice man can also the tesco fiasco where they said they had learnt there lesson and would listen to the public HA HA we send troups all over world to uphold democracy and we have a bunch of dictators running our council
Posted by: billy, darlington on 9:28am Sat 26 Apr 08
sorry i forgot about the football stadium where they tld george reynolds he was not allowed to hold concerts or car boot sales but now they decide this nice man can also the tesco fiasco where they said they had learnt there lesson and would listen to the public HA HA we send troups all over world to uphold democracy and we have a bunch of dictators running our council
Posted by: billy, darlington on 9:29am Sat 26 Apr 08
sorry i forgot about the football stadium where they tld george reynolds he was not allowed to hold concerts or car boot sales but now they decide this nice man can also the tesco fiasco where they said they had learnt there lesson and would listen to the public HA HA we send troups all over world to uphold democracy and we have a bunch of dictators running our council
Posted by: miketually, Darlington on 9:48am Sat 26 Apr 08
Me too Brian ;)
Posted by: billy, darlington on 8:59am Mon 28 Apr 08
why is martin cmparing the distance between rows of houses and a road and the houses.the truth is it started further away and because of a big problem they moved it nearer there is a shicane around a pylon brands hatch would be proud of so why dont the powers to be tell the truth and people might have understood
Posted by: billy, darlington on 9:00am Mon 28 Apr 08
why is martin cmparing the distance between rows of houses and a road and the houses.the truth is it started further away and because of a big problem they moved it nearer there is a shicane around a pylon brands hatch would be proud of so why dont the powers to be tell the truth and people might have understood
Posted by: billy, darlington on 8:38am Tue 29 Apr 08
theres no mention of the man in charge of this project who was also responsible for pedestrian hearts overspend councillor john buxton who all of asudden went into retirement
Posted by: Peter Robson, Darlington on 9:40am Sun 11 May 08
Posted by: john, darlington on 11:22am Thu 24 Apr 08
it is also just a stealthy link into the coming Cross Town Route (unannounced)going towards the new route intended past North Road Station, along the line of Whessoe Road to join the already constructed road end within the Faverdale Estate and on past the resedential area to the A68 and the Motorway.

unanounced? I saw plans for this about 25 years ago at the town hall. its also why the properties at the junction of Albert Road and North Road were demolished all those years ago, to make way for a roundabout.
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