M+W Group faces £133m claim over Hull energy plant

Aaron Morby 2 years ago

Engineering contractor M&W Group is facing a £133m claim for the late delivery of a £200m green energy plant in Hull.

Hull energy plant at the centre of the court action
Hull energy plant at the centre of the court action

The legal battle has arisen after the group’s subsidiary MW High Tech Projects failed to meet targeted completion and saw its main contract terminated by client Energy Works Hull.

Both firms are now heading for the High Court with claims and counterclaims stemming from failure to deliver the project, termination of the main contract and assignment of a key subcontract package.

Client Energy Works Hull is claiming £133m to cover the cost of rectifying defects, delay damages and added costs to complete works.

MW disputes the claims and has counterclaimed for £46.7m based on the contractual provisions for payment following a termination for convenience.

MW won the contract to design, procure, construct, commission and test the fluidised bed gasification power plant back in November 2015.

It claims delays in commissioning stemmed from the client’s failure to provide refuse derived fuel (RDF) that was compliant with the contractual specification.

This delayed commissioning when the RDF was rejected by MW and led to the failure of commissioning when key subcontractor Outotec’s plant was damaged as a result of the non-compliant RDF.

It also claims that Outotec’splant was delivered late and was defective.

Details of the legal row emerged in a preliminary hearing covering legal points in the complex case.

Outotec’s work was assigned to the client when the main contract was terminated in March after MW failed to achieve targeted completion in April 2018.

In preliminary hearings, its was ruled that the assignment of accrued and future rights to Energy Works Hull prevented MW from seeking an additional claim against Outotec for liquidated damages under the subcontract.

The judge also ruled that other complex issues relating to the legal battle and proportions of damages would be determined at the full trial.

The project has already been the subject of two other courtroom battles.

The most recent saw small specialist pipework firm Premier Engineering Lincoln win a £615,000 payout from MW from contested supply of labour, supervision and materials invoices.

The other saw MW successfully overturn an adjudicator’s ruling in favour of a £368,000 payment to subcontractor Engie Fabricom (UK).

Latest news

John Lewis £500m funding deal to build 1,000 rental homes

Deal to advance BTR flats at store sites in Bromley, West Ealing and Reading
2 hours ago

Eric Wright wins tricky £52m Liverpool transformation

Contractor working with engineers at Ridge and Partners on "challenging" Stanley Lock Flight site
2 days ago

Investment giant buys Bristol M&E contractor

RDCP Infrastructure acquires Avon Combined Electrical Services
2 days ago

Demolition start for £50m Farnworth town centre rebuild

Caddick Construction is tipped for main works due to start in the spring
3 days ago

L&G Modular strikes deal to build 1,000 affordable homes

Modular homes business teams up with Hampshire's Vivid housing association
3 days ago

Former Erith operations director joins John F Hunt

Scott Exell named new operations director at demolition specialist John F Hunt
3 days ago

Green light for £135m Leeds twin tower resi scheme

Construction to start in New Year on 500 build-to-rent apartments
3 days ago

Mace hits 1m tonnes carbon saving target for clients

Present work pipeline betters 2026 carbon emission saving target
3 days ago

Plans in for £40m surf park at former Kent colliery

Seahive surf lagoon and health resort will be built near Deal
4 days ago

Crushed demolition worker vows to return to industry

Shannon Brasier hoping to return to construction following horror accident
3 days ago

Mount Anvil to start 900-home North London estate rebuild

Planning approval paves way for Barnsbury Estate rebuild in Islington
3 days ago

Green light for major laboratory campus in Cambridge

Developer BioMed to tender first building on 600,000 sq ft lab complex in the New Year
4 days ago

Belfast firm signs the biggest work deal yet under Project Gigabit

Fibrus to hook-up rural Cumbria to lightning-fast broadband under £108m deal
3 days ago

McLaren wins Leeds logistics park contract

Work to start imminently on warehouse complex for Firethorn Trust
4 days ago

Work restarts on £683m waste power plant after site death

Construction suspended for a week of investigations following fatality
4 days ago

Demolition starts on £135m Wigan Galleries scheme

Contractor BCEGI starts work on project to redevelop Wigan town centre
5 days ago

Amey CEO to step down following private equity buyout

Amanda Fisher to leave once business is transferred to new owners
4 days ago

New body set up to vet plant operator card schemes

Contractor trades bodies unite to tackle competency concerns over plant operator skills cards
4 days ago

Kier leads switch to hybrid battery generators

Battery units work alongside smaller generators cutting run times by nearly 60%
4 days ago

Plans in for first Leeds co-living scheme

Watkin Jones submits plan to convert old Direct Line HQ into 230 studio flats
5 days ago

Demolition worker crushed by excavator

Court hears 20-year-old woman was left with "life changing injuries"
5 days ago

Government pays £700m for 50% stake in Sizewell C

New body, Great British Nuclear, will be set up to develop pipeline of nuclear projects
5 days ago

Costain wins Heathrow Airport asset renewal deal

Firm takes early contractor involvement role in Terminal 2 baggage handling upgrade
5 days ago

Worker killed on £683m waste power plant site

Fatal collision involving heavy goods vehicle on giant north London site
6 days ago

HS2 JV shifts four Wembley Stadiums of earth in record time

EKFB team digs and hauls 15 million cu m of muck in 20 months
6 days ago

Milestone wins £300m Wiltshire highways upkeep

Ringway will hand over to Milestone in March next year
5 days ago

Low-risk business model helps Renew post record results

Renew reveals latest acquisition with £15.6m purchase of water specialist Enisca
6 days ago

London Albert Embankment hotel towers approved

Two separate hotels rising to 26 and 29 storeys approved
6 days ago

Keltbray names new director of strategic engineering

Tim Lohmann takes up newly-formed role to drive innovative engineering solutions
6 days ago

Go-ahead for £200m lithium refinery on Teesside

Work to start next year on Europe's first lithium hydroxide processing plant
6 days ago

Contractor services