A NEW £1.7 million depot being built at Elvington for a York haulage business will definitely be completed on time and within cost.

A new contract has been drawn up to ensure that House of James Transport, the family firm at Dunnington, will get its new 36,000 sq ft facility on a two-acre site at Airfield Business Park, Elvington, by September 1.

The certainty for the 90-staff, 40-vehicle fleet firm is necessary to meet promises made to prospective customers who want more storage space.

It operates nationally in the UK plumbing, plastics and packing industries with the majority of its stock coming from Italy, Belgium and France - and demand is growing.

The specialist contract was drawn up for House of James by Gareth Hevey, head of York-based solicitor Denison Till's construction team.

It controls and limits time and cost risks associated with the development and other infrastructure works.

Builders are Osbaldwick family firm William Birch & Son which owns the site. For that reason, said Mr Hevey, it was not possible to have a normal building contract.

It was important to ensure "that they receive the facility they need on time to take advantage of the anticipated upturn in business," he said.

Chris Birch, managing director of William Birch & Sons, said: "We are delighted to be providing House of James Transport with the design build service they require.

"Our business park is proving very attractive as we have two other local businesses also interested in moving into upgraded premises.

"We are happy with the Denison Till contract, which offers House of James Transport the same protection which we would always hope to provide. Construction work is off to a good start and we look forward to handing the facility over on time."

Simon Gill, managing director of House of James Transport, said: "Commissioning new premises is a major logistical and financial step for any business. In this case it is essential that we gain occupation on time to take advantage of new business which is in the pipeline.

"For this reason we asked Denison Till to ensure that we have the right contract with William Birch & Sons, which is design building the facility, to minimise any risk to us caused by delays or cost overruns."

He said: "I expect it to be full to capacity within six months."

Updated: 10:08 Tuesday, May 27, 2003