SVM cleared of £43.7m damages

by Carol MIllett



SVM, the consultant which designed the British Library's electrical trunking, has been cleared of any blame for damage to the library's electrical cabling which resulted in cost overruns of more than £43.7 million and many months of delay.

The highcourt case was brought by the Department of National Heritage (DNH), backed by its insurer Commercial Union.

The cabling, laid by Balfour Beatty, was found to be damaged by having been dragged over sharp edges whilst being laid. Lengthy sections were found to have been ripped down to the copper core. A hand inspection of 3,000km of cable had to be carried out, with large sections having to be replaced.

The repair work was initially carried out at Balfour Beatty's expense. But as the company realised the extent of the damage it refused to carry on unless the DNH paid for the extra work. Eventually the DNH agreed to pay Balfour Beatty £43.7 million to have the remedial work carried out and waived all rights to recovery against the contractor. This left SVM as the only party that could be sued.

In a rare move for a construction case, all SVM's defence costs have been recovered, emphasising that the company has been completely exonerated.

SVM's chief executive Michael Carver said he was delighted with the outcome.

He added: "It is regrettable that SVM was taken to court as a result of the earlier commercial settlement made by the client with the contractor. This effectively meant that those responsible for the damage in the first place could not be made to pay for it. Today's judgment makes it clear where the responsibility for what happened lies."

In a statement this week Balfour Beatty said it "has always rejected and continues to reject liability for the cabling problems on site."