Brooke issues Library threat

Heritage Secretary Peter Brooke has threatened to re-coup through counterclaims some of the millions of pounds spent on the British Library in London from the contractors which have carried out unsatisfactory work.

The cost of the project has rocketed from œ116 million in 1978 to œ450 milion as delays and mistakes have dogged the work since it began in 1982.

And the cost of the project is set to rise further, prompting the Government's financial watchdog - the National Audit Office - to announce a second inquiry into the scheme.

Brooke told the House of Commons National Heritage Committee that although the scheme looks set to break its œ450 million budget, the overspend will be clawed back from the teams on site which are being managed by Laing Management.

Claims and counterclaims are expected to drag on for years and there is still no completion date for the scheme.

Brooke denied that delays had been caused by builders who wanted the job to last as long as possible or that there was any evidence of corruption on site.

This allegation was made to the committee by Brian Lake, of the British Library Regular Readers' Group, who said an environment had been created on site in which 'corruption could flourish.'

There is sufficient concern for the NAO to launch a second inquiry into the project. Its previous report, in 1990, showed that delays in the 1980s stemmed from incompetence and mismanagement.

And earlier this year consultant Kennedy & Donkin carried out an investigation into cabling carried out on site. Balfour Kilpatrick installed 2,000km of copper wiring in Phase 1A.

Normally protected by a plastic casing, the wire is said to have become exposed, leaving the system vulnerable to short-circuiting.

Laing Management is concerned about being singled out for criticism on the job. A spokesman said: 'We are construction managers not the main contractor. As such, we need approval of the client's representative before any action can take place.

'Trade contractors are directly employed by the client.'

A spokesman for National Heritage told CJ: 'Many disputes with contractors are waiting to be resolved. Once determined, they will bring the final cost to less than œ450 million.

'The principal problem is the cabling. Kennedy and Donkin's report is with us and we are considering it. The department will decide what action to take in August: this could mean rewiring and work could start before we have resolved who pays.' He added: 'Ministers will also decide in August what claims to take against Laing Management, Balfour Beatty (Balfour Kilpatrick's parent company) and other main contractors, and subcontractors.'