Monday, September 7, 2009

Shepherd and McAlpine in payment bust-up

Shepherd Engineering Services (SES) has begun legal action over whether an adjudicator can rule on parts of the response given by Sir Robert McAlpine, who it is in a payment bust-up with.

SES claims it is owed an additional ВЈ558,000 after its ВЈ7.7m contract for work on the Foreign and Commonwealth Office at Hanslope near Milton Keynes was extended by 13 weeks to January 2008 following disruptions on site.

McAlpine claims it only owes the firm just over ВЈ42,500.

The case went to adjudication in July but SES says the adjudicator, Kevin Hayes, "does not have jurisdiction" to rule on two responses given by McAlpine, known as Claims 1 and 3.

McAlpine describe Claim 1 as a "deduction claim", while Claim 3 is described as an "overpayment claim".


Shepherd and McAlpine in payment bust-up


McAlpine declined to comment.

BLOB: The number of claims filed at the Technology & Construction Court in London is up 42% on figures from a year ago. More than 350 claims had been filed since January 1 by the end of last week - compared to just 250 at the same period last year.

Lawyer Patrick Perry at Barlow Lyde & Gilbert said: "Tender prices are going down and the problem is that, when contractors undercut each other, that brews up a claim."

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