The construction of two new reactors at Hinkley Point nuclear plant is now estimated to cost up to £19.6 billion, an increase of 10% on what was originally estimated, according to a BBC article published today.
Not only has the costs budget for the project gone up, but the likely date for completion has increased to 2025 – 8 years after its original target completion date.
French energy supplier EDF is funding two thirds of the project, with the remaining investment coming from China.
EDF say the extra costs have resulted partly from an adaptation of the project design to ensure plans meet UK regulations.
It is hoped that the plant will create more than 25,000 jobs, though the timeframe for seeing this come to fruition have been pushed back once more.
This situation should serve to remind both businesses and individuals of the importance of agreeing terms in their own construction contracts to ensure that projects do not end up costing a lot more and taking a lot longer than what was initially intended.
Not only could it be fatal to plans, but it could also end up in extremely costly litigation as construction disputes will arise due to inadequate construction agreements.
This is not legal advice; it is intended to provide information of general interest about current legal issues.
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