Balfour Beatty pays £137,000 to whistleblower

Grant Prior 7 months ago
Share

Balfour Beatty has been ordered to pay £137,000 to a former regional pre-construction manager who accused the firm of under-estimating potential profits on a Welsh government job.

callaghan_square_cardiff_picture_by_philip_halling_via_wikimedia_commons
The Callaghan Square project was eventually cancelled by the Welsh government

Nigel McArthur had worked at the company for nearly ten years and had nearly 40 years’ experience in the construction industry.

Balfour Beatty tendered in 2014 for an £18.5m project at Callaghan Square in Cardiff which would be paid for out of public funds by the Welsh Government.

But McArthur believed Balfour would be making greater profits than declared to the client by not submitting the lowest quotes received by subcontractors to the Welsh government.

He raised concerns internally through the company’s whistleblowing procedures but claims he was subsequently bullied.

McArthur resigned in February 2015 and began a claim for constructive dismissal.

Balfour Beatty admitted his claim in November 2015 and the compensation judgement of £137,000 has now been handed down by the court.

Balfour Beatty said: “In the employment tribunal proceedings, Balfour Beatty did not contest Mr McArthur’s claim for unfair dismissal and is paying compensation to him as assessed by the Court.

“We accept that we failed to properly support our employee following concerns he raised, which resulted in him feeling it was necessary to resign.

“Balfour Beatty encourages its employees to report workplace concerns they may have and we have the tools in place to support them in doing so.

“We regret that on this occasion we fell short of the high standards we set for ourselves in this area. We will use the lessons learnt from this experience to provide better support to our employees in the future.

“Balfour Beatty did not behave illegally or fraudulently in relation to the Callaghan Square project.

“Once senior management were aware of the facts regarding the Callaghan Square project, we provided full disclosure to the Welsh Assembly.

“The Welsh Assembly later made a decision not to pursue the project for reasons of their own unrelated to this matter.”

Terry Falcão, employment lasw partner at Stephens Scown who represented McArthur, said: “Nigel has shown immense integrity throughout this case and has had the courage of his convictions to stand up for the truth.

“This case clearly underlines that even though many companies have whistleblowing hotlines and model policies and procedures in place, it remains very difficult for employees who speak out.”

Latest news

Balfour resurrects Kilpatrick name for new M&E arm

New £300m revenue M&E business formed from merger of engineering services into engineering construction operation
14 hours ago

Great Ormond Street starts talks for £190m phase 4

Trust aims to appoint main contractor and design team in the Spring
18 hours ago

Galliford Try kicks-off London regen zone with £175m project

First major scheme in capital's Old Oak Common zone to start in the New Year
22 hours ago

Speedy offloads large plant fleet for £14m

Ardent Hire snaps up troubled firm's excavator, dumper and road roller fleet
22 hours ago

McAlpine wins £16m HQ for world’s biggest telescope

Work to start in December at University of Manchester’s Jodrell Bank site
23 hours ago

Three in race for £33m Strathclyde Uni sports and health complex

Balfour, BAM and Morgan Sindall in hunt for University's next Glasgow building project
1 day ago

Essential Living goes modular for 23-storey PRS tower

Fast-tracked Creekside Wharf will be one of the country's tallest modular buildings
2 days ago

CITB warns apprenticeship levy to cut funding by 30%

Industry training board warns firms will be deterred from taking on apprentices
22 hours ago

Brickbats fly over looming brick shortage fears

Row kicks off after estate agents blame house price rises on lack of brick supply
1 day ago

Betting Spy: Jeremy Corbyn can make us all money

Tories look a good thing at evens to win a majority at the next election
1 day ago

Bam Mott JV green light for £36m Hull flood defences

Bam Nuttall/Mott MacDonald JV to shore up defences along a 7.5km stretch of the river
2 days ago

Government to miss new homes target by over 250,000

The Treasury is rumoured to be finalising plans for a fresh housing stimulus
2 days ago

Kier starts £48m Cambridge tech firm HQ expansion

ARM HQ expansion at Peterhouse Technology Park gets underway
2 days ago

Tube maintenance taken away from Amey in bid to save £80m

Transport for London to take work back in-house on Jubilee, Northern and Piccadilly lines
3 days ago

Henry Boot bullish about post Brexit market

Developer and contractor sees no wobble in future work pipelines
2 days ago

Family Mosaic picks 17 firms for £500m build plan

Ardmore, Bouygues, Galliford Try and Willmott Dixon among preferred list
2 days ago

Immigration officers raid Liverpool Baltic Village site

Contractor W.I.S.E United faces fine of £20,000 for each worker if correct checks not carried out
2 days ago

Plans lodged for £150m Manchester PRS scheme

Work will start in Spring 2018, if planning is granted
2 days ago

Brookfield submits plan for 37-storey London city tower

Building work could start in summer 2018 after six-month demolition phase
3 days ago

Chinese cladding contractor facing HSE asbestos probe

Yuanda UK under spotlight over imported products
3 days ago

Carillion profit soars to £84m from support services

Blacklisting compensation to cost Carillion £10.5m
3 days ago

Just one week left to vote for best in construction

More than 10,000 votes in already for Enquirer awards: Book your places now
3 days ago

Costain profits dented by further losses on waste PFI

£11.4m hit on completing Manchester waste PFI plunges natural resources division into loss again
3 days ago

Robertson starts work on £333m Aberdeen conference centre

Green light for development by Henry Boot and Aberdeen City Council
3 days ago

Interserve wins £17m York University project

Piazza learning centre will be built on University's east campus
3 days ago

Revenue swoops on tax dodging tradesmen

Operation Dobbin catches 17 fraudsters to help level playing field for honest workers
3 days ago

Lendlease wins £200m contract to build Versace tower

50-storey luxury scheme designed in partnership with famous fashion house
4 days ago

BAM Construct nearly doubles profit to £13m

Mainstream building contracting business margin edges up to 0.6%
4 days ago

Balfour wins £42m London Nine Elms student tower

33-floor student tower kick-starts wider Vauxhall Square scheme
5 days ago

United Living looking for new subbies and suppliers

Meet the Buyer event in Northampton next week: Register now
4 days ago

Contractor services