Nurseries costs in East Renfrewshire criticised

Covid-19 restrictions caused work on six early learning facilities – at Glenwood, Crookfur, Overlee, Busby, Eaglesham and Cross Arthurlie – to grind to a halt earlier this year.

Cabinet members recently approved £910,000 for additional costs and £803,000 as a compensation payment to the contractor, Heron Brothers.

But Tory councillor Gordon Wallace said the payment must “stick in the throat” of East Renfrewshire residents and there have been calls for greater protections in future contracts.

“From what I can understand, at the moment as a council, we are about £4.5m behind because of Covid expenditure,” Mr Wallace said.

“This is suggesting we are helping bail out one of our suppliers, one of our contractors, to the tune of about £800,000.

“It really must stick in the throat of many residents, who must think hold on a second, we have got some really tough times ahead next year.

“I hate to think what budget cuts we are going to be looking at next year.”

But council officers said the payment had been made, following legal advice, to avoid a costly dispute.

Andy Cahill, the council’s director of environment, said the costs had been incurred when the contractor had to close the site, such as security and plant, and when work restarted under social distancing restrictions and with reduced staff.

He added if the payment wasn’t made then the company could take the issue to an adjudication, which the council “would almost certainly lose”.

Mr Cahill also said Heron Brothers had “bent over backwards to accommodate the council”.

“If we did go ahead and terminate the contract, it could involve us in a lengthy court battle, it could involve us in additional costs and it could potentially involve the contractors ceasing work on site.”

Cllr Wallace said: “It is almost as if we have a gun to our heads. The effect these things are going to have on us as an organisation is going be crippling.

“Why are we bailing people out when we’re in such difficulties ourselves?”

He urged the council leader and chief executive to raise the costs with central government, adding: “This is just unbearable, and we are not getting the support from Scottish Government.”

Cllr David Macdonald added: “I just feel we should be much more robust and watertight with financial protections.

“They seem to have far more leverage in terms of dictating or backing out of the terms.”

And Councillor Paul Aitken said: “It’s almost like open cheque book time. It’s a completely outrageous figure. It’s public money, taxpayers’ money, just being handed across to a contractor.”

But council leader Tony Buchanan said it was “clear” why the costs had been incurred.

“No one anticipated us to have a Covid pandemic and the knock-on effect of that has been extremely costly.

“In terms of raising the cost of the pandemic, yes, that does get raised on a regular basis.”

Almost £27.4m had already been approved for the nurseries, which are being built to help East Renfrewshire Council meet the Scottish Government’s increased early years entitlement of 1140 hours childcare for all eligible children.

Heron Brothers is the contractor for all the nurseries, except Cross Arthurlie. They had expected to finish work in July before the Covid-19 shutdown.

Around £575,000 was required to pay for sewerage works and was included in additional project costs of £910,000, which was also approved by the cabinet.