Centre Point Tower developer claws back £1m from McAlpine

Aaron Morby 6 years ago
Share

The developer behind London’s Centre Point tower conversion into luxury apartments has clawed back a £1m payment to Sir Robert McAlpine in the High Court.

Developer Almacantar and McAlpine became pitched against each other following a bust-up over delivering the project as a design and build job.

McAlpine was working on the £100m-plus project under a pre-construction service agreement (PCSA) signed in Spetember 2012. But by June 2014 ahead of moving to the next main contract stage, McAlpine said it would no longer entertain a design and build contract and proposed a construction management or management contract form of procurement.

Almacantar rejected the offer and the contract was terminated in September. Three months later Almacantar appointed Multiplex as the main contractor for the job.

The two then became embroiled in a dispute about whether the contract terms allowed a final part of McAlpine’s fee to be released under the PCSA agreement.

McAlpine contended that the previous two-stage contract terms allowed it to be paid a remaining 50% tranche of fee when any main contractor was appointed.

Almacantar argued that the terms of releasing the second part of the fee only applied once a main contract was agreed with McAlpine, not any other contractor.

Initially an adjudicator ruled in McAlpine’s favour, but the High Court has now backed Almacantar, ordering McApine to repay the £1.1m including interest awarded in the adjudication.

Justice Jefford said: “This is not a contract under which, if Almacantar exercised its right to terminate, it would, with impunity, avoid paying the second 50% of the fee.

“The purpose of the PCSA was to put Almacantar in a position to proceed with a well-planned design and build contract with developed contractor’s proposals and a robust contract sum.

“In most circumstances in which Almacantar terminated SRM’s engagement, Almacantar would to a greater or lesser extent lose those benefits and have to go back to the drawing board with another contractor.

“That would be the position if the parties could not reach agreement, if Almacantar was dissatisfied with SRM or if, as happened, SRM did not wish to proceed.”

Justice Jefford added: “The only circumstance in which Almacantar would have a windfall  – but a fairly valueless one – and SRM would be unfairly out of pocket would be if Almacantar decided not to proceed with the project at all.

“If on the other hand SRM’s construction of the PCSA were right, they would receive the second 50% of the fee even if its services had been of no benefit to Almacantar in engaging with another contractor.”

 

 

Latest news

Carpenter killed by falling timber frame panels

Court fines specialist contractor £8,000 after site tragedy
6 hours ago

Road sweeper specialist files administration notice

Go Plant lodges court notice
12 hours ago

Anglian Homes rides in to finish crashed Everest contracts

Rival doubled glazed window specialist commits to complete orders
11 hours ago

Final work starts to connect super sewer to London system

End in sight with 1.5m thick concrete wall to be demolished to link-up to Lee Tunnel sewer system
12 hours ago

Legal challenge launched against £1.5bn A66 dualling

Balfour Beatty, Kier and Keltbray must now await outcome of court challenge
12 hours ago

John F Hunt wins 24-storey Battersea tower

Specialist to carry-out demolition, enabling works and RC frame construction
1 day ago

William Hare wins steelwork on £500m Broadgate towers

Specialist to work on 2 Finsbury Avenue with McAlpine
1 day ago

McAlpine appoints MD to grow ventures business

Owain Thomas will build on private rental and healthcare development successes
1 day ago

BAM Co-op Live Arena opening delayed yet again

Another gig cancelled last night amid last minute safety concerns
1 day ago

National Grid unveils winners for £9bn network upgrade

New 'enterprise model' to deliver infrastructure schemes quicker and cheaper
2 days ago

Turkish insulation panel maker to build £45m UK factory

Assan Panel to open first UK plant at Freeport East
1 day ago

Expanding consultant Stantec swoops for Hydrock

Stantec UK business expands by a third as 950 staff join from Bristol-based engineer
2 days ago

Contractors wanted for £800m highways deal

Bids invited for Eastern Highways Alliance Framework 4
1 day ago

Galliford Try names group head of infrastructure

David Lowery promoted to Divisional Managing Director – Infrastructure.
2 days ago

Chigwell Group looks at stock market listing

Essex contractor registers as Public Limited Company
2 days ago

A57 Mottram Bypass clears final legal challenge

Balfour Beatty to get go-ahead to start shortly
3 days ago

100 jobs axed as Geoffrey Osborne confirms administration

Chairman Andrew Osborne calls it a 'sad day' as board loses fight for survival
3 days ago

Midgard set for Notting Hill office tower overhaul

Landmark project edges towards final approval after 10-year planning saga
2 days ago

Cumbrian civils firm clinches £40m Sellafield contract

Civils specialist Stobbarts will support McAlpine on groundworks and concrete
2 days ago

Designers named for London 2000-bed student rooms job

Bouygues will build £400m London School of Economics student scheme next to Tate Modern
2 days ago

£117m-turnover contractor files administration notice

ARJ Construction lodges court notice
3 days ago

£1bn London Blackfriars tower blocks approved

Trio of buildings rising to 45, 40 and 22 storeys approved by Southwark Council
3 days ago

Council decides to end Balfour deal after 13 years

Contractor has been maintaining roads across Herefordshire since 2013
3 days ago

Six civils clients to switch to low carbon concrete and steel

National Highways, Northumbrian Water and Sellafield sign fresh decarbonising pledge
4 days ago

Fortem extends homes repair deal across Birmingham

Willmott Dixon owned firm adds another two years to deal worth £170m
3 days ago

Kier wins £118m civil service Darlington hub

Work is expected to start towards the end of this year
4 days ago

Green light for 34-storey Digbeth apartments tower

480 flats will be delivered for Clarion housing association
3 days ago

LHC starts race for major retrofit and decarb framework

Hunt starts for firms to help with 6.1m social homes upgrade target
5 days ago

Windows giant Everest crashes into administration

Around 350 jobs at risk while hunt starts for a buyer to salvage business
5 days ago

Green light for £500m Newcastle health complex

Mixed use scheme will promote healthy living across all stages of life
5 days ago

Contractor services