Mistakes made at the outset in the construction of two ferries delayed by over five years saw money “effectively wasted” on rebuilding units, the chief executive of Caledonian Maritime Assets Ltd (CMAL) said.
Kevin Hobbs claimed that the issues were down to a “catastrophic failure" of management, not a failure of the workforce.
The two vessels – the Glen Sannox and the as-yet-unnamed hull 802 – were originally due to be completed in 2018, but have since been delayed until at least 2023.
The delays have also seen the costs soar over budgets with the latest estimated cost reaching at least £250 million.
Mr Hobbs said units were “riddled with errors” which meant extra costs went towards undoing the work and rebuilding them.
It comes after former Ferguson Marine shipyard owner Jim McColl accused the company, which handles Scottish Government ferry contracts, of blocking every attempt to carry out an independent resolution.
Speaking at Holyrood’s Public Audit Committee, Mr Hobbs disputed claims that CMAL interfered in the work carried out in the Ferguson Marine, which runs the last remaining shipyard on the lower Clyde.
READ MORE: ScotGov-controlled CMAL 'got away with it' in Ferguson Marine ferry fiasco
He was asked to justify a statement in Cmal’s written submission, which claim the cause of the cost overrun was “catastrophic contractor failure”.
The chief executive said: “What we were seeing, basically, is units being built at risk, not signed off by us, not signed off by Lloyds and what that then meant was that when they were inspected there were many, many mistakes.
“So, Mr McColl said that we interfered. This is not interference. This is actually pointing out that this is a unit that has been built incorrectly.”
He said he rejected any claims of “meddling or interfering” in the construction, adding: “I think there was complete confusion by the shipyard.
“And let’s be honest about it, Mr McColl has no shipbuilding pedigree whatsoever.”
Explaining the skyrocketing costs, he said mistakes were made from the outset since the drawings for the vessels were not approved.
He said: “If you can imagine one unit of cost, it then takes a unit of cost to undo it, it then takes another unit of cost to do it properly.
“You can easily see that what should cost one unit of cost becomes three units of cost. That is the simplest way that I can explain what was going on.
“There were mistakes made at the outset by the builder because they didn’t have approved drawings and when the units were inspected they were riddled with errors and had to be undone and then redone.”
He added that the costs grew further if mistakes were not identified until the ships were already outside the shed or afloat, including for the Glen Sannox which was launched too early in November 2017.
The committee also heard that CMAL did not want to publicly announce Ferguson Marine as the preferred bidder to build two ferries at an event in 2015.
Nicola Sturgeon ultimately attended the event at the Port Glasgow shipyard on August 31, 2015 where Jim McColl’s company was declared the preferred bidder.
However, Cmal (Caledonian Maritime Assets Ltd) had advised against making a public announcement, saying discussions about the contract were ongoing and they did not want to present Ferguson Marine as a “fait accompli”.
Morag McNeill, interim chair of Cmal, said: “We were concerned it was going to be seen as a fait accompli with the public when we still had significant miles to go on the contract.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel