William Eichler 16 August 2018

Council retendering Guildhall refurbishment after costs ‘spiral’

York City Council is retendering the refurbishment of its historic Guildhall building due to concerns over spiralling costs.

The council terminated a £9m contract with Interserve last April after it judged the firm’s cost estimates to be too high.

The revamp of the 15th century building was going to cost an extra £5m-£6m, resulting in additional borrowing costs of £260,000-£310,000 per year.

The council scaled the plans down by removing a proposed upper floor, but this would still have increased the budget and borrowing costs by £4m-£5m and £210,000-£260,000 respectively.

Cllr Keith Aspden, executive member for economic development, said back in May: ‘We’re still determined to make sure that such an in historic complex plays a strong role in York’s future.

‘This is a setback, but we have a duty to offer value for money for the people of York and we can’t let costs spiral. Now we need to focus on making the most of Guildhall’s enormous potential.’

A new shortlist of firms have been invited to tender in January for an 18-month project.

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