The UK’s largest local authority has brought in an independent adjudicator as it seeks to resolve a dispute with a contractor over road repairs.
The Birmingham Post reported on 25 May that Birmingham City Council and Amey took the step following council concerns over delays and the quality of work carried out dating back to the autumn of 2014.
The council began a 25-year, £2.7 billion partnership with Amey in June 2010, under which the company is carrying out the maintenance and management of 2,500 kilometres of roads in Birmingham on the council’s behalf.
A council spokesman told the Birmingham Post: “We are formally in a dispute with Amey and have referred the matter to an external independent adjudicator, as per the process in the contract. We are hopeful that we will be able to resolve matters soon and come to an agreement in due course.”
An Amey spokesman said: “We regularly review and discuss issues with the council through the appropriate contract structures and are confident the current matter will be resolved in a positive way. Our ongoing service is not affected by this process.”
Palmers has particular expertise in dispute resolution in the construction sector, including identifying the most effective approach to addressing the issue, with options including negotiation, more structured mediation or formal proceedings, such as adjudication, arbitration or litigation.
We can also advise on payments relating to breach of contracts, including liquidated and ascertained damages. For more information, please contact Adam Davis.