Insolvent builder sparks road and payout muddle (From Gazette)

Insolvent builder sparks road and payout muddle

3:30pm Wednesday 4th March 2009 in Search By Helen Orrell

HUNDREDS of residents have been thrown into confusion after a developer went into administration.

Householders living next to the Northern Approach Road could lose out on tens of thousands of pounds in compensation after building firm, Cofton, announced it was ceasing trading.

Meanwhile, nine roads in the Northern Approaches development and Little Rome, High Woods, have been left unfinished.

Cofton was due to put the final touches to five streets in Northern Approaches from today, so they could be handed over to the control of Essex County Council, but residents have been told this will no longer take place.

Martin Goss, Lib Dem councillor for Mile End, who lives in one of the affected streets, said: “It means if you live in a new house on a new road which has not yet been taken over by the county council, you will pay a full council tax yet the council won’t fix pot holes, repair lamp posts, litter pick or take away abandoned trolleys or cars.

“It’s up to the builder to do all of those services. If Cofton can no longer do it, the roads become a no-man’s land with no one looking after them. It’s an absolute mess.”

Up to 57 households in Defoe Crescent and Mill Road are still waiting for £5,000 to £20,000 for the noise and pollution they have suffered since the Northern Approach Road opened in 2003.

The money was to be paid by Cofton, which built the road, in agreement with Essex County Council to compensate the residents for the blight.

Bob Russell, Colchester’s MP, said: “I’m hoping those who are due compensation for the Northern Approach Road will not lose out. It has been a long delay already and I don’t think Cofton going into administration is going to hasten a decision.

“At best there will be no further delay, at worst it will prolong it even further.”

Scott Wilson, Essex County Council spokesman for highways and transport, said: “We will be taking further advice on the situation with regards to the affected roads, compensation claims and any other ongoing matters.”

Who will pay for compensation and road repairs?

TAXPAYERS could be forced to foot the bill for road repairs and compensate homeowners after a developer called in the administrators.

Residents and politicians have questioned who will pick up the pieces after Cofton announced it was stopping trading.

The situation has left Essex County Council furiously checking what finances are available to bring the nine roads in Mile End and High Woods up to standard and pay compensation to dozens of homeowners, who have been blighted by the Northern Approach Road.

Tim Thornton, 54, of Defoe Crescent, is awaiting compensation. He said: “The difficulty is should tax payers then foot the bill. I’m not sure they should and if I was a tax payer I would be pretty cross.

“On the other hand we have been waiting a very long time for this and the road has made a huge difference with all the noise and light pollution.”