The problem arose from the supply and fitting of the specialised Bubbledeck floors in the £19.6 million building, which is being constructed by Wates.

The sub-contractor, Bubbledeck UK Ltd, has not paid for the materials which have already been delivered and installed at West Suffolk House, in Western Way, and the supplier had refused to make more bubbledeck slabs until the bills were paid, according to a report to St Edmundsbury's Cabinet, on Wednesday.

The report also warns that any delay in supplying the flooring will affect the completion of the scheme and this could cost more than the current £100,000 bill.

The report says urgent powers have been invoked which have allowed chief executive Deborah Cadman to authorise payment, which will be funded from unallocated capital receipts. St Edmundsbury is paying £50,000 and Suffolk County Council the remainder. Work is now under way on completing the manufacture of the flooring.

Nigel Aitkens, portfolio holder for economy and asset management, said: "We were aware for some time there was an issue with Bubbledeck and everyone had worked together and we hoped to see the contract through.

"Under the arrangement we have, we share both the pain and gain."

The agreement drawn up between the two authorities and the main contractor meant that the councils would have direct responsibility for the bubbledeck, which creates a strong floor but requires less concrete.

Cllr Aitkens said the council did not expect any further problems on the scheme as the remainder of the building work was more straightforward.

The building will house 600 staff from both councils and is expected to save both authorities £700,000 a year and improve services.

It is the first building to have heating/cooling pipes embedded in the concrete floors along with recycled plastic balls, designed to be a greener alternative to solid concrete floors.

The building is expected to be completed and open early next year.

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