Bridgend Council’s Cabinet is set to approve a modification to the council’s road resurfacing contract (pdf).
The current contract with Centregreat is set to be extended until March 2023. However, they’ve approached the council asking for an 8.9% uplift in project fees due to inflation.
Rising prices for oil – one of the base ingredients for tarmac – has been cited as one of the main causes, along with rising diesel costs for vehicles and changes to national insurance payments for employees.
The increase has been agreed upon in principle. While the value of the contract will remain the same (£5million over two years), the cost of each individual project will increase.
Officers suggest this could lead to some road resurfacing projects being delayed or de-prioritised.
In the report, it’s said that “the increased cost will impact on the extent of the programme that can be delivered and works will need to be altered or removed to ensure the budget allocation is not exceeded.”
