After a delay in delivery of works, engineering contractor M&W Group is facing a £133m claim over a £200m green energy plant in Hull. The group’s subsidiary MW High Tech Projects have failed to meet targeted completion and so a legal battle has arisen.
The client Energy Works Hull has terminated the main contract after the delay and both firms are now heading for the High Court with claims and counterclaims stemming from failure to deliver the project.
All the aspects including termination of the main contract and assignment of a key subcontract package are addressed in the claims note to the court. Energy Works Hull is now claiming for £133m to cover the delay damages, cost of rectifying defects, and other added costs.
MW is counterclaiming for £46.7m based on the contractual provisions for payment following a termination for convenience. MW won the contract to design, procure, construction, commission and test the fluidized bed gasification power plant back in November 2015.
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