NHS Hospital Trust

Members of the Systech Solicitors' team acted for an NHS Trust. Advice was provided in connection with a project for the construction of new Day Surgery Unit and Women's and Children's Units at the hospital in question. The project was in significant delay and arbitration had been threatened by the Main Contractor, if its claims were not settled and paid. The original project value was approximately £9m and the claim was for payment of something in the order of at least a further £5m.

Advice was provided to the Trust on the contractual merits of the Main Contractor's claims and a strategy was developed to enable the Trust to ensure completion of the project whilst negotiations continued with the Main Contractor.

Following completion of the project, the Main Contractor simultaneously commenced formal arbitration proceedings and adjudication proceedings in an attempt to gain a fighting fund. Both matters were dealt with simultaneously, including the instruction and detailed briefing of a high profile delay analysis expert. Adjudication proceedings were successfully defended but the gap between the competing valuations remained very significant. Although settlement seemed unlikely, through various reports, the Trust was kept informed of the likely range of outcomes and the risks it faced. Conduct and advocacy were provided in arbitration proceedings until a compromise was successfully reached.