Having declared their prejudicial interest in this item, Councillors Holbrook and Gardiner left the room during its consideration.

Further to minute 493 (23 April 2009), the Director of Technical Services provided an update in relation to the works to West Kirby Marine Lake following the main contractor, Pierse Contracting Ltd., having gone into administration. He reported that initial contact between the Council and liquidator had been made and it had been explained to the liquidator that no money would be forthcoming in respect of payment to Pierse until the full cost of completing the works was known, including costs incurred due to additional staff time, consultant’s fees and other additional expenditure.

The second place contractor, Jones Bros (Ruthin) Ltd., had agreed to undertake the completion contract, subject to re-pricing based on the outstanding works and their willingness to mobilise at short notice, taking account of the contractual requirement to allow the prestigious Wilson Trophy Sailing Competition to proceed, had helped to ensure that delays were kept to a minimum. He reported that Jones Bros had complied with the contractual requirement for the provision of a Bond. They had no parental company and were not required to provide a guarantee for the works other than that identified in the contract. He reported that due to the default of the first Contractor, the Council would not have a company to hold responsible should defects in materials or workmanship become evident in those works carried out by Pierse Contracting Ltd. However, a large proportion of the works had been undertaken by a single sub-contractor, Hesselberg Hydro (1991) Ltd., who had offered to provide a warranty for the asphaltic works undertaken on behalf of Pierse. The Director confirmed that the warranty would be provided at no additional cost to the Council as it would be deductable from monies owed to Pierse Contracting Ltd.

Resolved –

(1)  That the purchase of a warranty from Hesselberg Hydro for the un-guaranteed bituminous works in a sum up to a maximum of the amount specified in Appendix 1 to the report now submitted, be endorsed.

(2)  That the financial implications around the liquidation of Pierse Contracting resulting in no net increase in financial burden on the Council be noted.

(3)  That the decision to appoint Jones Bros (Ruthin) Ltd. to undertake the Completion Contract, be endorsed.

(4)  That the thanks of the Cabinet be accorded to those officers who had been involved in ensuring the successful completion of the scheme.