Council schemes £8m over budget - report

Two major development projects in Rotherham have gone millions of pounds over budget, prompting the council's chief executive to launch an investigation.

The authority's town centre markets and library scheme plus a new Wath library have gone over budget by a total of £8m.

The library scheme will increase by £2m to £12m while the cost estimate for the Rotherham project will rise by £6m to almost £47m.

John Edwards has now commissioned a review into "what lessons can be learnt".

Rotherham Council identified the town centre markets and library as "catalytic major projects", said a report to the council's Cabinet.

The authority appointed a contractor and work began on site in September 2023 with a forecasted cost of almost £41m.

The scheme included a refurbished indoor market, a new food hub, the demolition of the outdoor covered market, a new central library and improvements to public spaces.

The report said there was now "insufficient budget to complete the project" due to a number of challenges.

The council overestimated how ready the project was as the design was "insufficiently developed".

There were extended periods of amendments and costs due to delays.

Additional costs with insurance, utilities and diversion works were not accounted for in the original budget or included in the contract.

The report said: "At the point of contract award, there remained significant elements of design work to be undertaken and drawings were not as well developed as assumed.

"The outstanding design work required the appointment of additional design expertise, leading to significant delays and cost."

Officers looked at ways to cut costs, including a smaller building and changes to the external design, but these required a redesign and new planning permission, causing significant delays to the project.

It is the second time costs have soared for the project, as the initial budget was £31.7m.

The new market hall should be completed by June while the library should open this autumn. The indoor market is expected by autumn 2027

In July 2024 the cost of a new library in Wath was said to be £10m and a contractor was appointed. The council said it now believed the cost has risen by £2m.

This is largely due to increase in demolition costs of around £800,000 due to previously unidentified and significant levels of asbestos. There have also been extra costs due to construction, inflation, contract negotiations and more extensive design work.

Demolition of the old library began in February 2026. Wath library should have been completed in spring but will now not be completed until December 2027.

The extra money needed to complete the projects will come from unallocated money from the Levelling Up Fund, Towns Fund, High Streets Fund, and the council's capital contingency fund.

The council's Cabinet will discuss the report at a meeting on 11 May.

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