Monday, May 18, 2009

Welsh civils firm and Carillion set for court payment battle

A Welsh civil engineering firm has taken its bitter payment row with Carillion all the way to the High Court, in a bid to retrieve the ВЈ750,000 it claims it is owed.

Carmarthenshire-based Jones Brothers’ (Henllan) dispute stems from a package of subcontract works it undertook for Alfred McAlpine Capital Projects, which was taken over by Carillion in February 2008.

The Welsh contractor was engaged initially to carry out enabling works for the main access road of a holiday park called Bluestone in Pembrokeshire National Park.

In a writ lodged at the Technology and Construction Court, Jones Brothers (Henllan) details how it was then invited to tender for other packages of civil engineering and enabling works on the scheme.


Welsh civils firm and Carillion set for court payment battle


It claimed that it agreed with McAlpine that it should make applications for payment in respect of the whole of its subcontract works, rather than individual contracts and that the approach continued after the contracts were novated to Carillion.

But problems came to the fore after Jones Brothers (Henllan) made a May 2008 valuation, in which it tried to agree a вЂfinal account sum’ for each package of work it had completed, along with a 2.5% retention to be released in respect of each package.

The Welsh contractor alleges that its applications for payment were not valued in accordance with the mechanism provided by its contract conditions. And it claims that it has received no payment in respect of its August and September valuations.

Jones Brothers (Henllan) claims that it values its final account for payment at ВЈ6,401,625.99. But to date it alleges that Carillion has certified only ВЈ5,755,884.85 and paid just ВЈ5,494,112.88.

It is now suing Carillion for breach of contract, and is claiming a total of ВЈ747,472.56 through the courts.

Both firms declined to comment.