An Inverness businessman who claimed compensation because of the River Ness flood scheme said it “hasn’t come close” to replacing lost earnings during the works.
Richie Paxton runs Westbourne Guest House on Huntly Street and says he lost years of passing trade because of the River Ness Flood Alleviation Scheme.
It was revealed this week that Highland Council have overspent by at least £1.4million on the controversial project.
But the costs are expected to spiral even further to more than £3.1million over budget – taking the total cost to £37.8million, nearly 9% over the original planned cost.
The council has blamed unexpectedly high claims from local businesses as one of the key factors, with compensation making up a total of around £1.3million.
Mr Paxton said: “That kind of money is hardly chicken feed, £3million is a lottery win to most people.
“Where does this money come from. I’ve been in business a long time and if you went that far over budget then you would be bankrupt.”
He added: “I’m quite happy to say I put in a claim but what I was paid doesn’t come close to making up for what we lost.
“We completely lost out on passing trade because who wants to stay on a building site?”
Councillor Donnie Kerr, Inverness Central, said he was “disappointed but not surprised” that the project ran over budget.
He added: “I don’t think compensation claims should have come as a surprise to anyone. It devastated businesses in that area.”
A major increase in the costs is a £1,758,068.15p settlement owed to contractor Morgan Sindall after they sought adjudication for extra costs as part of the project.
A Morgan Sindall spokesman said: “We completed and handed over phase one of the River Ness Flood Alleviation scheme in June 2015.
“It has proven to be a vital piece of infrastructure in the town on a number of occasions as well as remodelling a key public area enjoyed by the people of Inverness.
“It would be wholly improper for us to comment on any arrangements with our customers.”
The council said the situation with Morgan Sindall “disappointing” and said it will carry out a review “to see if there are lessons which can be learned”.
