Balfour Beatty pays £137,000 to whistleblower

Grant Prior 10 years 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.

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

OCU moves into district heating with Valmech buy

Sheffield mechanical specialist to lead new district heating platform
1 hour ago

Galliford Try still stumped by legionella at £45m health centre

Contractor takes control of water system at building still stood empty nearly a year after completion
3 hours ago

Costain takes Morgan Sindall’s spot on Eastern Highways deal

Firm steps into EHA4 just nine months after framework launch
5 hours ago

HSE issues emergency guidance after Assent collapse

Higher-risk schemes must reapply to the regulator before work can restart
16 hours ago

Knights Brown profit jumps as energy and coastal work surge

Turnover up 15% to £116m as firm gears up for AMP8 water boom
5 hours ago

Speller Metcalfe appoints former Mace Boss Mark Castle

Industry veteran takes on contractor's first Non-Executive Chair role
5 hours ago

Green light nears for Edinburgh’s £1.3bn coastal town

Cruden Homes ready to kick off Granton Waterfront’s first 847 net-zero-ready homes
6 hours ago

Construction quizzed over plans to tighten asbestos regs

Plans to increase protection for site workers
6 hours ago

Green light for Surrey Police HQ and homes plan

Leatherhead site to deliver new base and 225 homes after RAAC-hit Reigate closure
21 hours ago

Go-ahead for GPE’s latest London HQ project

Whittington House upgrade forms part of 220,000 sq ft cluster near Tottenham Court Road
1 day ago

New faces join £1bn YORcivil Major Works framework

BAM, Esh, Jackson and Octavius secure spots for first time
1 day ago

Cladding firm sunk by BSR delays

Essex based aluminium cladding specialist hit by hold-ups
1 day ago

Go-ahead for £44m Oxford science park expansion

Oxford site set for five new lab and tech buildings after council approval
1 day ago

Glencar wins Warrington M62 service station job

Work to start early next year at junction 11 motorway services hub
1 day ago

Spencer Group stays on growth track despite £5m impairment

Strong pipeline and £83m work in hand set platform for another big year
1 day ago

Gratte Brothers expands across North of England

M&E specialist has eyes on more data centre work
1 day ago

Tilia Homes to start work on brownfield site in Northampton

Construction will transform 30-acre landfill site
1 day ago

Contractors courted for £1.7bn London DLR extension job

Firms urged to register for Thamesmead extension talks next month
4 days ago

Multiplex scales contracts league with London tower job

£400m city Dovetail Building deal tops October ranking
5 days ago

Vidi Construction went down owing £6m to subbies

Failure of main client sunk Coventry contractor
4 days ago

J&D Pierce founder hands reins to new MD duo

Joint managing directors named as Derek Pierce moves up to chairman role
4 days ago

Willmott Dixon plugs fire safety gap for CLT builds

First certified fire tests pave way for cross laminate timber builds
4 days ago

Green light for new £1.3bn neighbourhood in Salford

Ten resi towers to be built alongside 15 retail units
5 days ago

Buyers report fastest activity decline in five years

Construction hopes for better New Year
5 days ago

Ten high-rise schemes in limbo after building control firm folds

BSR pledges to reallocate cases and keep Gateway 2 clear-up on track.
6 days ago

Vistry sees demand start to return for new social housing

New build demand from housing associations rises as Government support starts to kick-in
5 days ago

Travis Perkins suppliers stunned as payment times increase

Builder's merchant giant could now take nearly three months to pay bills
5 days ago

Costain natural resources boss heads to Mitie

Sam White joins Mitie to lead 16,000-strong Technical Services arm
5 days ago

Willmott Dixon gets green light for Kirkby school rebuild

Contractor to start phased construction schedule at Nottinghamshire site
5 days ago

£60m homes plan for Sheffield city centre scrubland

Capital&Centric pushes ahead with 192-home Fitzwilliam project
5 days ago