Firm鈥檚 civil engineering arm confirms 拢570m Nottingham project is 鈥榤ainly鈥� responsible for losses in half-year results
Delays on Vinci鈥檚 拢570m Nottingham tram project were the main reason for 鈥渟ignificant losses鈥� at its UK construction business for the first half of this year, 黑洞社区 can reveal.
This week a spokesperson for Vinci鈥檚 civil engineering arm Taylor Woodrow, which is building a 17km extension to Nottingham鈥檚 tramline with joint venture partner Alstom, confirmed the project had been delayed.
The Nottingham Express Transit extension to Chilwell and Clifton had been due to be up and running by the end of December, but is now not expected to open until the middle of next year. A spokesperson for Vinci said 鈥減roblems鈥� on the job had 鈥渞esulted in some delays鈥�, but added: 鈥淲e deployed additional resources to mitigate these.鈥�
The spokesperson confirmed the Nottingham project was the one 鈥渕ainly鈥� responsible for losses at Vinci Construction UK in results for the six months to the end of June.
In these half-year results, published in July, Vinci said: 鈥淭here were significant losses at Vinci Construction UK. They were mainly due to one project that proved more difficult than expected, leading to overspending and delays, and sufficient compensation for [this]has not been obtained at this stage.鈥�
Nottingham council鈥檚 portfolio holder for planning and transport, Jane Urquhart, said the project delay was 鈥渇rustrating and disappointing鈥� and the council would 鈥渂e pushing them [Taylor Woodrow Alstom] to open the new lines as close to the contracted date as possible鈥�.
In the same set of half-year results Vinci wrote down the value of goodwill in its UK construction business by 鈧�57m (拢45m), citing 鈥渄ifficulties in the UK construction industry鈥� as the reason for the writedown.
The Nottingham tram scheme is the second Vinci project this month to emerge as being hit by delays.
As 黑洞社区 reported in early November, Vinci鈥檚 拢179m upgrade to one of Gatwick Airport鈥檚 piers 鈥� the biggest construction project at the airport 鈥� has been subject to 鈥減roject delays and commercial challenge鈥�.
In a joint statement Gatwick and Vinci attributed the increase to a 鈥渢ransfer of scope from other programmes into the pier one programme鈥�.
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