Saturday, September 13, 2008

Olympic plant supply row heads for courts

A row over a ВЈ15m contract to supply plant to the 2012 Olympics site could end up in court.

John Reilly, boss of Rainham-based Nationwide Plant, is threatening legal action against Morrison Construction following a dispute over supplying machines to the Stratford site.

Reilly told CJ he had signed a deal with Morrison in September last year to act as the вЂNo 1 supplier’ for 25t excavators, 30t dumpers, and dozers for 12 months on a ВЈ150m Olympic remediation contract.

Reilly believed the deal was exclusive and would see Nationwide supply hundreds of machines to the site from January this year, making it worth between ВЈ15m and 20m.

But Nationwide has so far only been called on to supply a few dumpers and one dozer. It has not been called on to hire out any excavators to the site at all, despite investing around ВЈ4m in new kit.
After months of wrangling, Morrison offered Nationwide the chance to provide 33% of the hire business available at the site for dozers, 20t-30t excavators, and dump trucks, for the remainder of the 12-month period.

But Reilly has refused the deal and told CJ that he would now launch legal proceedings.

He said: “Morrison says it wants to move forward, but we can’t move forward and forget 10 months. The money that it is costing me on a daily basis is stupid.”

Morrison declined to comment.