Mowlem looks to end Stena dispute

Mowlem plans to hammer out a meeting with Stena Line Ports to chase outstanding payment on a £10m marine project at Holyhead in Anglesey.

The two parties were in dispute in the High Court over the contract terms on the fixed-price job.

Mowlem contended that it started work on the marine port in November 2002 under 12 letters of intent issued between 17 October 2002 and 20 June 2003.

Mowlem claimed that because Stena accepted work done after 4 July 2003 and after the value of work exceeded £10m, the client should pay either a reasonable sum or that Mowlem was entitled to be paid a reasonable sum for those works.

Stena did not accept Mowlem’s view, claiming that any financial over-run would be the contractor’s burden.

Throughout the action Mowlem never put a figure on the final cost of the project; its final three letters to Mouchel, Stena’s consulting engineer, refer to sums of £10.7m, then £10.1m, and finally £10.4m.

During the dispute, it emerged that Mouchel valued Mowlem’s works at £8.9m – a sum the contractor did not accept.

His Honour Judge Richard Seymour QC found in favour of the client, in so much that he ruled Mowlem can not claim for costs beyond £10m.

The contractor will now enter into discussions with Stena to work out exactly how much it is owed.

A Mowlem spokeswoman said that the firm has already set aside £600,000 in its accounts in relation to the project.