Interserve booted off delayed Glasgow energy plant

Aaron Morby 5 years ago
Share

Waste specialist Viridor has terminated Interserve’s contract on a delayed Glasgow gasification plant project during the early commissioning phase.

Interserve revealed it had been served with a notice of termination of contract on Tuesday after the project has been beset with technical problems causing serious delays.

Construction of the £154m Glasgow Recycling and Renewable Energy Centre project began in 2013 with the site originally due to start operations earlier this year.

But in May, Interserve revealed the project was seriously delayed and it was setting aside a £70m provision at its construction division due to technical problems on the job.

Many of Interserve’s problems stemmed from three supply chain company insolvencies during construction, the largest of which was gasification technology supplier Energos.

Commissioning of the project started in May this year, but the project has not been handed over yet.

Alan Cumming, Capital Projects Director for Viridor, said: “While commissioning is now well underway, our contractor Interserve has continually and repeatedly failed to meet delivery milestones. 

“Viridor has made every effort to avoid this highly regrettable action.  That said, against a backdrop of Interserve continuing to report further delays, Viridor is no longer able to tolerate further impacts on this important environmental project.”

He added: “We are liaising with key stakeholders to encourage Interserve to offer every support to their employees and affected supply chain.  

“Following formal legal termination of our contract with Interserve, we will move to implement a full, professional delivery team, mitigating where possible impacts on the existing supply chain.”

The 200,000 tonnes per-year capacity facility is being built at an established waste facility in Polmadie and is the cornerstone of a waste treatment contract worth £254m between Viridor and the local authority.

In a statement Interserve said: “We are assessing the implications of this development with our legal advisers and will issue a further update in due course.”

Latest news

Subbies stop working for Beaumont Morgan Developments

Manchester based contractor was delivering Fortis Quay for associate development company
24 hours ago

Roofer dies in six metre plunge through asbestos sheets

Court hears no safety nets were fitted on site
17 hours ago

Gove threatens ban on cladding suppliers failing to pay for retrofits

Cladding and insulation suppliers now in firing line for cash for £9bn post-Grenfell remediation bill
1 day ago

Bill for £22bn HS2 extension to Manchester goes to Parliament

52-mile extension of HS2 to Manchester via Manchester Airport will support 17,500 construction jobs
23 hours ago

Galliard scoops up trio of sites for schemes worth £265m

Sites in Redbridge, Ipswich and Milton Keynes to be developed
22 hours ago

Plans in for 350-flat Salford student scheme

Developer X1 hopes to start 15-storey building later this year
24 hours ago

Green light for Birmingham Paradise landmark hotel

17-storey hotel will be the 'cornerstone' of Phase 2
4 days ago

Structural steel price jumps another £50 a tonne

British Steel blames New Year's price hike on continuing high product costs
4 days ago

Enabling works start at £400m Manchester First Street

Downing to start main construction in March of three resi buildings rising up to 45 storeys
4 days ago

Former BAM Nuttall chief to join Murphy

Adrian Savory to start new role as director of Major Projects division next month
4 days ago

Bouygues set for London Tustin Estate 700-home rebuild

Phased building programme to start towards the end of the year
4 days ago

Safety horror show on housing site leads to director ban

Court hears contractor ignored multiple prohibition and improvement notices
4 days ago

JV North calls up local firms for £250m new home works

Framework for home building projects worth up to £2m
4 days ago

Kier more than halves debts to below £200m

Kier chief reports steady progress in first six months of trading
5 days ago

Barhale boosts funds as it looks to rebuild turnover

Contractor confident as water companies ramp-up spending plans
5 days ago

HS2 labour agency looks to float on AIM

£23m turnover labour supply business looks to raise funds for expansion
5 days ago

Kane scores £29m M&E deal with Willmott Dixon

Off site works to play crucial role in major London estate contract
5 days ago

Graham secures third Audley retirement village

Work starts on Audley Villages site at Scarcroft, West Yorkshire.
5 days ago

Keltbray wins first deal for former nmcn infrastructure arm

Hull waste processing contract for rescued division
6 days ago

50 firms win £750m decarbonisation framework

Fusion21 framework to target 'whole building' works on homes and schools
6 days ago

Balfour Beatty UK construction MD to step down

Tom Edgcumbe to depart after just over a year as MD construction services in England and Wales
6 days ago

Crest Nicholson trebles cladding retrofit provisions to £43m

House builder revises building safety retrofit costs in face of new Government guidance
6 days ago

BAM bags £110m refurb of iconic Covent Garden tower

Landmark Seifert-designed 15-storey Space House to get two extra floors
7 days ago

Winvic to start UK’s largest speculative shed

Ellesmere Port warehouse understood to be worth around £80m
6 days ago

Kier signs deal for £169m Luton hospital revamp

Main construction work to start this month and last until 2024
6 days ago

Willmott Dixon nabs £30m Kirklees police HQ

Work to start within next few weeks on regional police HQ
6 days ago

Kier reported to be in talks to buy Tilbury Douglas

Talks reported to be at an advanced stage between both boards
7 days ago

Finance sealed for next-generation London office job

Goldman Sachs takes stake in London Bridge office project
7 days ago

John F Hunt starts giant clean-up on £110m Walsall site

Land remediation work at contaminated site will take two years
7 days ago

Build to rent boom lifts Watkin Jones profit to £52m

Surging build to rent market lifts development pipeline to £1.8 billion
7 days ago

Contractor services