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Bath and Spa can relax after settling costs dispute

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A Bath-based spa has finally resolved its £21m legal battle over rising costs in building development, as all parties agree an out of court settlement.

The Bath Spa Project has seen its building costs triple to £45m since construction began in 2006 and the local council, builders and architects were all set for a January court date to decide liability.

But all three parties have agreed on a settlement which reflects a “sensible recognition of the costs and uncertainties of litigation”, following drawn-out talks this week.

Literal and metaphorical cracks began to appear in the project in October 2004, as the work of vandals and poor construction halted the spa’s development.

Builders, Carillion, initially served a writ against Bath and North East Somerset Council (BANES) in August 2008, claiming £2.4m relating to the spa’s problems. The council issued a £21m counter claim in immediate response.

But this week’s undisclosed settlement seems to have finished the prolonged issues and animosity within the project.

“Following a mediation and discussion between the council, Carillion plc and Nicholas Grimshaw and Partners (NGP), the project’s architect, all three parties have agreed to a settlement of the litigation between them over the Bath Spa Project,” said a BANES statement.

“All three parties agree that the settlement reflects a sensible recognition of the costs and uncertainties associated with pursuing litigation.”

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Written by Andrew Hodges

November 25, 2009 at 10:12 pm

Posted in Comment, LinkedIn

Tagged with , ,

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