Contractor鈥檚 defence alleges 鈥渇ailings鈥 at project manager Atkins behind dispute

Contractor Bam Nuttall has filed a 拢43m counter-claim against Cambridgeshire Council in its deepening dispute over the construction of a 拢151m guided busway.

Bam Nuttall鈥檚 defence alleges serious failings on the part of consultant Atkins, the independent project manager for the scheme, which it claims attempted to create 鈥渟purious鈥 reasons for the council to not accept completion of the project.

The court papers also show that the amount the council is claiming from Bam Nuttall has increased by 拢14m since it filed its 拢55m claim to compensate it for increased cost and the two-year project delay last August.

The Cambridgeshire Guided Busway was originally due to be finished in early 2009 for a price of 拢116m of which 拢84m was to go to Bam Nuttall. In the event it was finally handed over to the council on April 21 2011 at a reported cost of 拢152m.

Bam鈥檚 defence of the Council鈥檚 claims maintains that delays to the project were largely not the responsibility of the contractor, and that alleged 鈥渕ajor defects鈥 in the construction which prevented the Council from accepting completion of the project were not significant enough to prevent use.

Regarding the Southern section of the line specifically, Bam Nuttall states that Atkins鈥 lead on the project 鈥渟ought to delay the date on which he would be obliged to decide that completion had occurred by creating a series of spurious contractual disputes.鈥

It says that despite being employed as an 鈥渋ndependent鈥 project manager, Atkins 鈥渇ailed to act independently and fairly鈥, acting instead 鈥渇or the sole benefit of the council.鈥 These amounted to 鈥渟erious and numerous鈥 failings, the defence alleges.

A spokesperson for Atkins said: 鈥淲e were engaged as the independent administrator on the Cambridge Busway scheme and we are confident that we always acted in the best interests of the project. We are unable to discuss any details at this stage due to the on-going legal action.鈥

It is understood an NEC2 target price construction contract was agreed for the works. Cambridgeshire County Council says that during construction this requires the Council to pay the actual cost of the work. However, at the end of the construction period the difference between the actual cost and the final target cost is split between the parties in accordance with a formula set in the contract.

Nuttall denies the 拢54.7m claimed by the council is due, and says it itself is owed 拢43.1m.

Bob Menzies, Cambridgeshire County Council鈥檚 head of infrastructure delivery, said the council had obtained extensive advice on the Busway contract and remained confident of its position. He said: 鈥淏am鈥檚 documents will now be reviewed in detail by the Council鈥檚 legal team.

鈥淚t would be inappropriate for us to make any further comment until we have reviewed BAM鈥檚 defence and counterclaim and prepared and provided our formal response, which will be submitted to the court in due course.鈥