Spiralling costs delay MacePlus BSF scheme

MacePlus is facing major delays on its £32.6m Building Schools for the Future (BSF) Teddington School scheme, due to spiralling construction costs and government underfunding.

Richmond Council awarded MacePlus its BSF One School Pathfinder scheme in November 2007, but the firm has yet to start on site. The scheme ground to a halt earlier this year after bids for the construction packages came in well above the original estimates.

Confirming the delay, Richmond Council deputy leader Stephen Knight told CJ: "We are negotiating with MacePlus about how we can bring these costs down. They have been putting out packages of works to subcontractors that are coming in much higher than expected. MacePlus is talking to subcontractors to see what is driving these costs."

Knight criticised the government for underfunding the project. "The government raised councils' expectations by promising to fund new buildings under the One School Pathfinder programme. But local authorities are finding that funds are nowhere near the amount needed. We have had to put in an extra £8m, yet despite our best endeavours the costs are still coming in significantly above what we estimated."

Knight said cost consultant Davis Langdon was looking at ways of cutting costs on the project. "It may be about retendering packages or looking at what is driving the costs," he said.

A Department for Children, Schools and Families spokesman said: "We have always been clear that cost overruns would have to be borne by councils."

MacePlus declined to comment.