Court orders Wrexham biomass plant builder to pay £10m

Aaron Morby 8 months ago
Share

A bust up over lack of progress with construction of a £25m Wrexham biomass plant in North Wales has seen the High Court order the contractor to repay nearly £10m.

Liverpool-based Green Plan Energy, with backing from funder Equitix and the Green Energy Bank, appointed Bester Generaciόn UK , part of the global Bester Group, to build the project in May 2016.

The project was designed to generate 34 GWh of green energy a year, enough to power 2,400 homes. As a combined heat and power plant it also had the potential to provide heat to nearby manufacturing businesses.

But works never progressed much beyond the preparatory phase and by July 2017 the developer terminated the epc contract.

Two weeks later Bester Generaciόn UK told the client it would no longer proceed with the job.

A previous adjudication found that the contractor had not been entitled to an extension of time and was to blame for the delays. And a later adjudication ordered that the contractor repay £9.8m with a further sum of £4,948.45 per day of interest.

This was challenged by the contractor but has been upheld in the High Court.

In his determination Justice Coulson said: “Unhappily, although this project has apparently cost a good deal of money, very little was ever achieved.

“It is common ground that the defendant’s works never moved beyond the preparatory stages. The claimant’s solicitor, noted in his second statement, “excavation on site had not yet taken place at the point of termination. No plant, machinery or steelwork has ever been assembled, installed or erected on site. The evidence of the claimant’s project manager, does not dispute that.”

About 80% of the £10m odd awarded by the adjudicator in the second adjudication was made up of the first four payment milestones which the claimant had originally paid to the defendant.

In judgement Justice Coulson said: “I order that the defendant is obliged to pay only £4.5m now, and to bring a further £1m into court. There will be a stay of execution in respect of the remaining sum – around £4.5m – until further order.”

Latest news

Crest Nicholson sounds profit warning

Build rates to be slowed down as London and the south suffers from lack of buyers
4 hours ago

Welsh ministers look to rebid £1.3bn M4 relief road

Cost-saving plan to split 23km Costain/Vinci motorway scheme into three contracts
4 hours ago

Bouygues confirmed for £250m Cavendish labs

Cambridge University signs contract for 354,000 sq ft physics complex
3 hours ago

Balfour Beatty renews £2.1bn Scape UK civils deal

Contractor reappointed as sole supplier for infrastructure across the UK
4 hours ago

Muirfield boss banned after creaming cash from failed firm

Ex chairman gets nine-year director disqualification after siphoning off £880,000
4 hours ago

Ex-Bouygues director joins Speller Metcalfe

Martyn Chaplin joins the Midlands builder after 15 years with Thomas Vale and Bouygues UK
4 hours ago

Warden Construction wins £26m Sheffield student job

Work to start in February on 289-bed scheme in St Vincent’s Quarter
4 hours ago

Galliford Try JV starts £20m Burton-on-Trent flood defence job

Bleak & Veatch is also on board to deliver 4km of river defences
1 day ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
6 months ago

Bellway sets aside almost £6m for post-Grenfell recladsd

Estates in East London and Cardiff Bay to be reclad
1 day ago

New firm set up at same address as South Eastern Electrical

New business incorporated just weeks before M&E specialist filed for administration
1 day ago

Banks cut lending to construction firms

Post-Carillion squeeze in bank lending to construction
1 day ago

North Midland scoops £225m South West Water alliance deal

H5O Alliance will be worth £25m-£45m a year to North Midland Construction
1 day ago

Metal Yapi wins major facade package from Mace

Specialist lands deal at Olympic park to clad residential towers
1 day ago

ISG wins £26m Wolverhampton Uni college rebid

New School of Architecture and Built Environment will be built at the former Springfield Brewery site
1 day ago

Staffordshire Uni submits plan for £40m skills hub

Site clearance to start in New Year for Spring 2019 building start
1 day ago

TfL and Pocket Living tie-up for cheap London homes

Cut-price flats to be built on TfL sites
1 day ago

Forecasters cancel 2019 construction rebound as orders fall

2019 construction growth forecast downgraded from 2.6% to just 0.6%
2 days ago

Worker loses arm in brick machine accident

Materials giant fined £200,000 after chargehand dragged into machine
2 days ago

Galliard Homes plans £500m Birmingham push

Housebuilder links-up with developer Apsley House Capital to build "London-style" apartments
2 days ago

Balfour confirmed for £85m London student scheme

Vine Street scheme will deliver 654 student beds across a 14 storey building
2 days ago

CEG submits plan for £79m Manchester resi scheme

21-storey mansion block planned next to Arndale Centre
2 days ago

£490m eastern area highways upkeep out to bid

Combined area 6 and 8 upkeep to be subject to 3-year service reviews over 15-year contract
2 days ago

Adenstar to pave way for £150m Sussex site

£15m infrastructure package to get underway in January
2 days ago

Alun Griffiths wants to meet new suppliers in South West

Meet the Buyer and recruitment event in Exeter: Register your interest now
3 days ago

Murphy cancels Christmas party as job cuts loom

Redundancies planned as slow down in growth predicted next year
5 days ago

Tideway boss to chair Construction Leadership Council

Andy Mitchell takes over from former Crossrail chief Andrew Wolstenholme
5 days ago

McLaren tipped for £120m Leicester City training complex

Planners give green light to stunning designs by architect KSS
5 days ago

Moda Living funding deal for seven build-to-rent jobs

Projects in Liverpool, Leeds, Birmingham, Edinburgh and Glasgow get green light
5 days ago

Yorkshire fit-out firm folds after 150 years

21 jobs axed as H. Waterhouse & Sons falls into administration
5 days ago

Contractor services