BARNET council are still negotiating a £10million claim put against it by a care provider after carrying out improvements to homes in the borough.

At last night’s cabinet resources committee council officers said they aim to come to an agreement with Catalyst before the middle of April.

An arbitrator had ruled the council should pay Catalyst more than £8million for improvement works and new care homes they built under a contract drawn up under the previous Lib Dem-Labour council administration in 2002.

The problems relate to Catalyst underestimated the cost of improving and developing new facilities for the council.

The firm had asked for around £17m to help cover the costs but the council decided to go to arbitration to decide how much it would be eligible for.

This cost the council £1.6 in legal fees and despite having set aside £7m in its reserves in 2009/10 it now has to find a further £2m to cover costs this year.

In the report, officers detail how an arbitration hearing in November 2010 ruled Barnet should pay for all losses for the first six years of the contract, plus interest.

The officers had argued the council was not liable for the full costs and should only pay a simple interest rate on those they were liable for.

Officers working to renegotiate the terms of the contract are waiting to receive Catalyst’s business plan and despite a two week delay, say they are looking to move this matter on.