Highland Council chiefs have been warned that delayed contracts could destroy small construction firms struggling to survive in the current economic climate.
And the authority’s finance chief accepted the criticism, agreeing that the council needs to buck up its act.
The bleak forecast came during a clash over the authority’s £14.2million capital budget underspend following a revelation that flagship council building projects were delayed for various reasons.
Delays have hit key schemes including the Inverness flood works, new schools and a graveyard extension.
Finance director Derek Yule confirmed that the money was still in place and projects would proceed, but late.
Planning chairman Thomas Prag highlighted that the council spent over £102million within the Highland economy last year, reaping “huge benefits including supporting local employment and development”.
But opposition member Margaret Davidson warned that “poor timescales” could send small Highland contractors dependent on such work “over the brink”.
She said: “Can we take a clear-eyed view at our project management because I’m convinced there are considerable improvements that could take place.”
Mr Yule said: “There is a track record of ‘slippage’. I don’t think we’ve totally got to the bottom of why that happens.
“Sometimes, perhaps, it’s over optimistic estimates of when the project can be delivered. Some is to do with the procurement process. Some of it’s to do with planning issues, some of which are outwith the council’s control.”
He added: “Services have not delivered what they said they were going to do, that’s the bottom line, and we need to be more realistic – what’s deliverable by when. Because the danger is that if you include in the capital programme a project to be delivered in this financial year and then it’s not, that money could have been used for another project that could have been delivered.”
Independent councillor Helen Carmichael urged the administration to employ more staff to ensure such projects are carried through on schedule.
The committee also considered the implications of a reported underspend of £5.6million in its revenue budget for 2014-15, which equates to around 1% of the overall £580million budget.
Final budget figures will be reported to next month’s full council meeting.
Budget leader Maxine Smith said: “The current financial position we have reported means we are in a strong position to face the challenges ahead.”