Councillors are set to meet to consider the final steps for settling the construction costs of redeveloping Northampton’s historic Market Square.
West Northamptonshire Council’s Cabinet will discuss a report recommending a commercial settlement with contractor Stepnell Ltd which carried out the work during 2023 and 2024 to transform the square into a vibrant public space for markets and events.
Since reopening in October last year, the new-look Market Square has revitalised the heart of Northampton town centre, with events and activities significantly stepped up this summer. Its use as an events venue has supported a recent rise in town centre footfall, with Fan Zones for the Women’s Rugby World Cup alone attracting over 10,000 people in August and September.
The Council has also seen a significant increase in investment from the private sector into the town as a result of the Market Square improvements, providing the necessary confidence for companies such as STACK to choose Northampton as their largest new operation in the UK.
The budget for redeveloping the Market Square is currently £12.518m, with the majority of the project funded through an £8.4m grant from the Government’s Future High Streets Fund, and £4m though the Community Infrastructure Levy (CIL).
At their meeting next week (11 November), Cabinet members will consider whether to enter a settlement agreement with Stepnell over the final construction costs of the scheme and whether to increase the budget by £1m of capital funding, to cover all additional costs of the project, including the negotiated and confidential settlement.
Negotiations and mediation between the Council and Stepnell have been taking place since August and if a settlement is not reached, adjudication proceedings would continue, potentially costing more money for taxpayers.
Cabinet members will also meet to consider lessons learned from the complex project, which during its construction faced a series of unexpected risks and delays including significant archaeological finds, collapsed Victorian sewers and having to divert more underground utilities than previously anticipated.
Councillor James Petter, cabinet member for local economy, culture and leisure, said: “We know this wasn’t the outcome anyone wanted. We’re taking responsibility and learning from it. Our approach to construction contracts, risk and procurement needs tightening, and we’re already reviewing those processes to make sure this doesn’t happen again.
“That said, the new Market Square is already transforming the heart of Northampton. It’s busy, it’s vibrant, and it’s drawing people back into the town. Events are bringing thousands of visitors, boosting trade and breathing life into local businesses.
“West Northamptonshire taxpayers are seeing a return on their investment, and private confidence is up because of it. Settling this now lets us draw a line under a complicated build and focus fully on the benefits the space is already delivering for our community.”
Cabinet will consider the report at its meeting on 11 November in The Forum, Towcester.
