Pennon says others who worked on job owe it 拢25m
The parent company of the firm that is demanding 拢72m from Interserve for botching work on an energy-from-waste plant has revealed it is chasing a further 拢25m from other firms who worked on the job.
Waste management specialist Viridor booted Interserve off the Glasgow scheme in November 2016, complaining that it had 鈥渞epeatedly failed鈥 to meet its delivery milestones. It added that it was 鈥渘o longer able to tolerate鈥 delays to the work.
In its latest annual report, Viridor鈥檚 parent, listed water utility Pennon, said it was chasing 拢97m it says it has spent 鈥渢o address remediation and non-conformities鈥 at the plant.
It reiterated that Interserve owes it 拢72m but added that it was after a further 拢25m from 鈥渙ther contractors and advisors鈥.
It said the 拢25m figure 鈥渃onsiders a broader range of counterparties to the project鈥.
In the report, which was published at the end of June, the firm said the scheme had been due to cost 拢155m but this has now ballooned to 拢273m 鈥 which includes shelling out 拢21m on providing additional throughput capacity.
It added: 鈥淰iridor is contractually entitled to recover the incremental remediation and non-conformities spend, including from the original contractor, Interserve Construction, under certain circumstances.
鈥淭he group believes these circumstances have been met for a substantial element which is recoverable from Interserve. Whilst dialogue with Interserve is ongoing, the group is preparing to legally pursue the matter.鈥
In its 2018 annual report, Pennon said the cost of the Glasgow plant had hit 拢238m but made no mention of looking to recoup money from other firms who have worked on the scheme.
Interserve has previously disputed how much it owes Pennon and a spokesperson told 好色先生TV the sum 鈥渋s materially lower than amounts claimed by the client鈥. Viridor declined to comment.
Yesterday, 好色先生TV revealed that the east Midlands councils threatening to boot an Interserve team from a lucrative waste management contract because it has still not finished an energy-from-waste plant had begun steps to replace the pair.
The scheme at Derby was supposed to be completed in spring 2017 but commissioning work, which began at the start of last year, has still not finished.
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