Case goes to arbitration as client chases 拢72m
The row between Interserve and the client which kicked if off an energy-from-waste scheme in Glasgow three years ago has gone to arbitration.
Viridor booted Interserve from the job (pictured) after losing patience with the firm, complaining that it 鈥渞epeatedly failed鈥� to meet its delivery milestones.
The decision came just a day after Interserve said its then chief executive Adrian Ringrose, who spearheaded the move into energy-from-waste which has so far racked up more than 拢200m in losses, was stepping down 鈥渋n order to pursue the next phase of his career鈥�.
Viridor鈥檚 parent, listed water utility Pennon, has since said that it has been forced to shell out millions of pounds carrying out remediation work and in its annual report this summer said the cost of the scheme, called the Glasgow Recycling & Renewable Energy Centre, had ballooned from 拢155m to 拢273m.
Following Interserve's administration in March, Pennon maintained it was owed a total of 拢72m from Interserve鈥檚 construction business for its botched work on the job but admitted it was not likely to receive the amount in full.
In its half year results, published yesterday, Pennon said: "Viridor are contractually entitled to recover incremental costs from the original principal contractor Interserve Construction Limited. We have now issued arbitration proceedings to progress legal recovery of the debt."
Pennon has previously said it is chasing 拢97m it says it has spent 鈥渢o address remediation and non-conformities鈥� at the plant.
As well as the 拢72m it says Interserve owes, it added that a further 拢25m was due from 鈥渙ther contractors and advisors鈥�.
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