A €9.57m contract awarded for work on part of the Limerick main drainage scheme ended up costing the exchequer almost €83m.

The contract was awarded in May 2000 but terminated in September 2001 due to a dispute with the contractor.

Limerick City Council claimed the contractor was not proceeding with due diligence and identified 120 alleged breaches.

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However, the contractor told the Public Accounts Committee that the hold-up was down to ground conditions.

The Council brought the case to arbitration after a non-binding conciliation found in favour of the contractor, however the decision was upheld.

An appeal was lodged with the High Court, which found evidence to support both arguments and would therefore, not intervene.

The contractor was awarded more than €32m in 2006 but the overall cost amounted to almost €83m.

Limerick County Council defended the decision to take on the case saying it had acted on advice that the contractor's claim was not well founded.

(VB/JM)