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The owners of a large mixed development in Tower Hamlets are headed for a High Court showdown with a groundworks contractor.

Property owners Team, who own Sutton’s Wharf North, say they have overpaid contractor Tamdown Regeneration more than £165,000.

Although Tamdown has repaid £47,514, £117,825.50 remains outstanding following an adjudication, according to a High Court writ. Now Team is asking the court to turn the adjudicator’s award into a court order, and to enforce payment of the money.

Tamdown entered into a contract for ground remediation work at the property in 2006, shortly after seeking planning permission to demolish existing warehouses, and construct seven buildings of 419 residential units, retail, office, and community floorspace.

The contract was worth £1,956,141.03, but despite a fixed lump sum price being agreed, there was an exchange of emails in March 2007 between construction manager Gardiner Theobald and Tamdown over a proposed remeasurement of the contract, the writ says

On August 3 2007, Tamdown sought payment of £449,433.17 after valuing its work at just over £4m, the writ says. Team terminated Gardiner Theobalds’ appointment as contract manager, and appointed Hollybrook instead.

Tamdown issued another application for payment on October 17 2007, and Hollybrook issued an interim payment certificate indicating that it had been overpaid £741,099.74, the writ says.

Team disputed the items claimed by Tamdown, and their valuation, and alleged that it had failed to adopt a cost effective solution for waste disposal. A cost effective solution would have reduced landfill disposal costs, reduced liability to pay landfill tax, received credit for recycled materials, and retained recycled materials for use onsite, resulting in cost savings of £741,099.74, it is claimed.

The two sides went to adjudication, and in June 2008 Malcolm Harris ruled that Tamdown had been paid £3,227,251.72 for work valued at £3,061,912.22, an overpayment of £165,339.50, the writ says. He ruled that Tamdown should repay Team £165,339.50 but the company has so far only repaid £47,514, the writ says.

Now Team is seeking payment of the balance of £117,825.50 and interest.