£26m Spa deal is 'not acceptable'

Talks over the deal are said to be continuing

A £26m offer from contractor Mowlem to finish the Bath Spa project is not acceptable as it stands, the city's council says.

Bath and North East Somerset council (BANES) says the offer would take the entire budget to £44m - £8.5m above the current approved total.

It said Mowlem's offer would mean the council would also have to drop all claims against the company.

But councillor Nicole O'Flaherty said talks over the deal were continuing.

When questioned about Mowlem's offer at a council meeting, Ms O'Flaherty, executive member for tourism, culture and leisure, said: "The council has not rejected this outright, but feels it cannot accept it as it stands.

'No official response'

"We will continue to talk with the contractor to see if a more satisfactory deal can be brokered."

Mowlem said it would guarantee an opening date of six months after any agreement was signed, and would bear the cost of any more delays or problems, instead of tax-payers.

Brian O'Neill, Mowlem's communications director, said on Thursday that the £26m price was a maximum figure and work to finish the project "could cost less than that".

He said the company had not received a formal reply from the council.

"As far as we are concerned, we are not aware of an official response from BANES about this offer," Mr O'Neill said.

Over budget and overdue, the Spa project has been marred by controversy.

The council has clashed with Mowlem several times, over peeling paint in the pools and cracks in the steam room floor.

According to Mowlem, the two sides have yet to resolve who is ultimately liable for these problems.