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Nottingham tram extension delays to cost £100 a minute

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DELAYS on the tram extension could cause an "effective penalty" of up to £150,000 per day – but no one knows who will be paying. The new lines were meant to be ready for passengers by December 14 – but they will not roll until the start of next year at the earliest. Those affected by the construction of the £570m project now hope the thought of the nearly £100 a minute penalty will spur on its completion. As a result of the disruption, at least one couple has cancelled a wedding at St John the Baptist Church in Beeston. Father Wayne Plimmer said: "Access to the church is currently restricted but NET is doing everything it can, given the extensive nature of the work involved. "We are not closed to weddings and funerals but at least one couple has cancelled an arrangement to marry due to the uncertainty around the timing of tramworks. "We are fairly certain that other couples have decided not to proceed as the number of weddings in 2013/14 is half the long-term average. "There is also far less footfall around the church with fewer visitors on a daily basis. The congregation are remaining loyal and we are doing everything we can to minimise disruption. "The works will cost us several thousand pounds in lost income. We have, for example, had to cancel our annual Garden Party which alone means £2,000 less for us." The two lines to Clifton and Toton Lane Park and Ride, near Stapleford, have experienced unforeseen problems with utilities, but the main work should still be finished by August. Mark Edis, owner of Jerry's at Beeston, in High Road, said: "In the scale of things £150,000 is a small amount. I'm sure that if they could have got the job done on time they would. "We may not be in business by the end of the delay and I would like to know where the money is going because, if 150 businesses got £1,000 a day, that would help." The tram consortium has not made it clear who will be paying the penalties due to the delay because of the information's "commercially sensitive" nature. Councillor Steve Barber has worked out the effective daily penalty of between £100,000 and £150,000 a day based on the 23 year payback scale plus interest – this is without loss of ticket income. The Beeston Rylands representative, said: "I understand that for every day the trams are not running, Tramlink Nottingham will not get paid, creating an effective penalty. I do not know what their agreement is with the contractor but I am sure there will be one. "As we get closer to the original deadline I think this will focus minds." It is thought money raised by a penalty will go back to the operator for loss of earnings. Chris Deas, Nottingham Express Transit (NET) project director at Nottingham City Council, said: "The commercial contracts which regulate the extension project are complex and involve a number of parties. "Although many of the details of the contracts are commercially confidential, the financial risk associated with the timing of the opening of the NET extensions has been passed to the private sector parties delivering the works, so they have a clear incentive to open the new tram lines as soon as possible. "The City Council neither receives nor makes any penalty payments from the private sector if the opening is delayed beyond the end of the year." Do you think the penalty fee is enough? Let us know by sending an email to newsdesk@nottinghampost.com.

Nottingham tram extension delays to cost £100 a minute


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