Birley council homes delayed until June 2027 as costs rise by £2.7m

A scheme to build 77 council homes in Birley has been delayed by 11 months, with costs rising by £2.7m, The Star reports.

Sheffield City Council’s development at Newstead, off Birley Moor Road, is now due to be completed in June 2027 rather than July 2026. On Monday 19 October, its finance and performance policy committee approved an additional £2,234,400 for the scheme.

Construction began in November 2024 with a budget of £21,882,300. The development comprises 41 houses with two to four bedrooms and 36 apartments with one or two bedrooms.

Water main forced diversion

A project officer told the committee that maps placed a water main along the site’s southern boundary. Groundworks for the apartments revealed that the pipe was elsewhere, obstructing the foundations.

Finding a diversion route with Severn Trent Water held up the work for 15 weeks. Negotiations with Northern Powergrid over a new electricity substation have also caused delays.

The officer said the key lesson concerned how the project had been commissioned. It was designed in-house and delivered by Peak Architects, rather than commissioned through a full design-and-build contract. Although that approach initially saved money, the council retained the financial risks instead of the contractor.

A contingency allowance of £1.3m has covered some of the overspend.

Source: The Star