Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: November 11, 2025

Purpose:

Content: RESOLVED: Cabinet;   a)                 Recommended to Council that the Market Square capital budget is increased by £1m increasing the overall budget to £13.518m to cover the overall project outturn costs, which will include additional construction costs aligned to that negotiated confidential Settlement Agreement so that the construction Final Account can be resolved. b)                 Subject to full Councils approval, delegates the authority to the Executive Director of Place to sign the Confidential Settlement Agreement in line with the Heads of Terms agreed with under mediation in August 2025.     REASONS RESOLVED:   1)     Following the completion of the construction works WNC and Stepnell have been engaged in a protracted negotiation where extensions of time and the loss and expense associated with this have been in a protracted dispute. The outcome determined at mediation with Stepnell demonstrates the best final account position that WNC can achieve whilst minimising the significant exposure to further cost from continued dispute at further adjudications or court proceedings. 2)     If the settlement is not achieved at this stage, the contractor may restart a separate adjudication proceeding. Sharpe Pritchard, the Council’s legal advisers, have advised that there is a risk on both sides, but there will be higher legal and other professional costs for the Council if the matter is not settled in line with the alternative dispute resolution provisions in the Construction Contract.   ALTERNATIVE OPTIONS   If the settlement is not achieved at this stage, the contractor may restart a separate adjudication proceeding. Sharpe Pritchard, the Council’s legal advisers, have advised that there is a risk on both sides, but there will be higher legal and other professional costs for the Council if the matter is not settled in line with the alternative dispute resolution provisions in the Construction Contract.