14-year ruck settled at last

Alfred McAlpine has taken a £2.3m hit after reaching a settlement relating to an old disputed contract dating back to 1989.

It was the final outstanding commercial matter of any significance following the group's decision to exit its open tender building business.

The client's claim ran to £16.7m and McAlpine received £8m from its insurers, with the balance coming from its own funds. Legal costs in recent times had inflated the final amount payable.

The dispute related to the construction of a building in Cambridge for Panatown. The client alleged that McAlpine was in breach of contract for office buildings and a car park that it believed to be defective, to the extent that they might have to be demolished and rebuilt.

The series of litigations has seen the case being taken to the Court of Appeal.