Work to repair Newport’s iconic Transporter Bridge and build a new visitor centre has more than doubled in cost which the city’s council has blamed on worsening market conditions as a result of Brexit and the pandemic. Work was due to begin last year after the bridge was closed to the public but the plans were dealt a significant blow when contractors Cleveland Bridge UK entered administration in July.
They were quickly followed into administration by a second main contractor charged with transforming the site, meaning the contracts would have to be retendered. A council report has revealed that the new bids were significantly higher due to worsening market conditions.
As a result the costs have risen from £11.9m to £16.9m. The projected cost of the visitor centre rose by 18 per cent while the bridge repairs rose from £4,668,243 to £9,342,010.
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A Newport City Council report reads: “The second round of tendering for the bridge repair has increased costs largely under preliminaries, main contractor overheads and profits, and lighting and electricals. These three items added £3.3 million alongside other price increases. The Transporter Bridge itself is a Grade I listed structure and works to the bridge require a specialist contractor.”
The report added that the council essentially had little option but to underwrite a shortfall of £3m after the National Lottery Heritage Fund sympathetically agreed to increase its funding contribution to £10.7m.
"If this project is to proceed, it is therefore necessary for the council to underwrite this figure," the report reads. "There is an urgent need for a decision as contractors will not hold their prices indefinitely and any further retendering exercise is expected to see further increases in price.” You can sign up to our Newport newsletter to get local news sent straight to your inbox here.
It adds: “The inflationary context in which we now find ourselves and the issue with sourcing materials means that any delays in agreeing to proceed with this project brings further risk to price. The further deterioration in the condition of the bridge also needs to be borne in mind.
"The time period for the tendered prices upon which this report is based on has already expired but the contractors are willing to honour those at this time but with a significant risk that they may need to change again as materials prices change."
Work on the site, which boldly pledges to make the bridge “the best visitor attraction in Wales”, was expected to end in September this year which would have allowed for a spring 2023 reopening.
