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Cambridgeshire council has launched a 拢54.7m legal claim against contractor Bam Nuttall and its parent company Royal Bam Group over a delayed 拢151m guided busway.

According to legal documents acknowledged in court this week, the council is suing the civils contractor and its Dutch parent company because of a guarantee given by Royal Bam in February 2009 to cover any of Bam鈥檚 liabilities on the project.

The council is also suing Zurich Insurance for 拢7.5m of that sum because of a guarantee bond taken out in December 2009.

The writ, filed in the Technology and Construction Court, says the target price of the job, to build a 25km-long guided bus route from St Ives to Trumpington via Cambridge, was originally just 拢83.9m.

A design and construction contract between BAM and the council was signed in September 2008 with an intended completion date of early 2009. Court papers confirm that when the project finally reached completion on 21 April this year it was more than two years beyond its deadline.

The papers contain little detail of the nature of the dispute, but Cambridgeshire council has previously said the busway was delivered more than 拢60m over budget. The writ now confirms it is attempting to have the vast majority of this overspend repaid.

It also maintains that its contract with Bam allows it to charge 拢14k per day for every day beyond the completion date, which amounts to 拢10.8m. The council has already withheld payment of 拢10.5m in respect of this amount.

Bob Menzies, head of busway delivery at the council, told the BBC last month that: 鈥淏am Nuttall finally delivered the scheme two years late and now dispute they should be liable for the overspend as set out in the contract.

鈥淭he council has no choice but to bring in extra resources to manage the contract and make sure that Bam Nuttall鈥檚 claims are properly assessed.鈥�

BAM Nuttall is understood to be contesting the claim, however the firm declined to comment on the case. Zurich Insurance also declined to comment.