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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.