HYNDBURN borough has vowed to fine a company £1,000 per day if it fails to meet the deadline for completion of new council premises.

Nelson-based Barnfield Construction, a one-third partner in Hyndburn regeneration agency Globe Enterprises Ltd along with the council and entrepreneur Stuart Nevison, will be forced to pay up if it does not finish the work by May 31 next year.

Council chiefs warned Barnfield at a meeting of the policy and resources committee they would be penalised at a rate of £1,000 for every day they exceeded the target date for completion of the refurbishment at Scaitcliffe House.

The move was prompted because Hyndburn will incur financial penalties if it fails to move out of the offices in time.

Director of Globe Enterprises Ltd Nigel Rix revealed the contract was due to be signed in the next few days and the council would purchase the newly-refurbished building on completion from Globe Enterprises at a guaranteed price.

The contract is worth between £1.4million and £2million and is the latest episode in the controversial move, forced upon the council after the leaseholders of the current Eagle Street site, Lancashire County Enterprises Ltd, decided to sell the property to European Settled Estates when the lease expires next year.

The administrative work relating to councillors and the chief executive's department will move, along with other departments, including corporate services and council staff.

Mr Rix said: "The fact that Barnfield is a shareholder in Globe Enterprises is irrelevant.

"This is a commercial arrangement to 'incentivise' the delivery of the building on time and the compensation arrangements are not a soft option at £1,000 per day.

"We are working in a disciplined fashion to deliver the best possible option for Hyndburn and there has been a lot of activity recently which was clarified at the meeting.

"The deal was difficult to achieve within the time frame but are pleased that we will be working to a guaranteed price. Our brief is to secure value for money which is what we are doing."