A major upgrade to the Dunkettle Interchange on the outskirts of Cork city could be delayed by up to a year after Transport Infrastructure Ireland and contractor Sisk failed to agree on a price for the project.

Sisk won the contract for the upgrade of the Dunkettle Interchange in June 2018 but the contract included a provision that if TII and the contractor did not agree a price on the second phase of the construction works, then the TII could go back to the marketplace and seek new tenders.

In a statement issued today, TII and Sisk confirmed that agreement had not been reached on the forecast of costs prior to proceeding with the main contractor works.

Both "remain committed to advancing the project" but it is likely the decision to put it back out to tender will delay the project by up to 12 months.

The project was originally budgeted for €100m when first announced in 2011 but TII believes that "due to worse than anticipated ground conditions and the consequent increase in scope, it is necessary to return to the market for the tendering of the main contract."

Over 100,000 vehicles use the Dunkettle Interchange every day.

The project is seen as essential to deal with current congestion problems and the future economic and population growth of the city.