The new A16 Spalding to Peterborough road resulted in an overspend by Lincolnshire County Council of £4.16million.
Early valuations of the land required and compensation payments to landowners proved too little. An area of land to the south of the scheme – which had previously been estimated at agricultural value – was found to have development value because of its proximity to Peterborough and, as a result, compensation payments were higher.
The other factor in the overspend was risk value – again set too low.
A council report says: “The original risk value was also set at an ambitious and optimistic level to meet funding constraints. A number of risks originally identified have been realised and a number of new risks occurred.”
The £80m A1073 improvement scheme was developed by Lincolnshire County Council, with £70m of contributions from the Department of Transport and Peterborough City Council.
The Lincolnshire section opened in August 2010, 14 months before the entirety due to geotechnical isssues issues near Car Dyke, which a £3m bridge now spans.
