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Costain settles National Grid dispute with £43m payment

Costain has ended its contract dispute with Nationwide Grid with a cost of £43.4m.

In a inventory market replace the contractor said that the ultimate settlement is reported to have been £10.1m less than it had previously estimated. 

The contractor mentioned that the cost was lowered following negotiations with the utilites distributer, Nationwide Grid.

Costain had been concerned in a dispute with the Nationwide Grid over the £113m Peterborough and Huntingdon improve contract, which concerned works on gasoline compressor stations. The contract was terminated in June 2020.

Costain mentioned: “As introduced on 13 December 2021, Costain was as a consequence of make a cost to Nationwide Grid of £53.5m in January 2022.  As an alternative, Costain has made a full and ultimate cost of £43.4m to Nationwide Grid.” The cost will likely be accounted as a provision within the 2021 revenue and loss outcomes. The money influence of the identical would come beneath 2022.

It added that the cost put a seal over any future claims beneath the contract.

The contactor, with headquarters in Maidenhead, expressed confidence in its outlook for the long run.

It instructed traders: “We’ve made begin to the brand new monetary yr and, with the UK authorities’s vital funding in infrastructure, we stay up for the long run with confidence.”

Nationwide Grid appointed Costain to upgrade the compressor stations in Cambridgeshire in 2016, however the schemes modified in design and scope which led to a doubling of prices and Costain leaving the deal. Murphy has since taken over the initiatives.

A dispute decision course of started after the termination of the contract in 2020 with an adjudicator ruling in favour of Costain over the contract on three factors. The adjudicator nonetheless didn’t decide the worth of the compensation occasions and dominated in opposition to the corporate on a fourth level.

 

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