Costain sued by Commission for New Towns over road row

Costain is being sued by the Commission for the New Towns in a £1m row over work to widen the M62 at Junction 8 near the Burtonwood air base.

Disputes over changed prices and completion dates arose between the two companies
and an adjudicator was called in to decide the disputes. He awarded Costain £1,014,331.42 plus interest.

However, the commission now argues that the adjudicator was wrong and is asking the High Court to overturn his decision.

The commission said the adjudicator’s decision was invalid and unenforceable, and that he relied on an agreement between the project manager and Costain that was not a written construction contract as required by law.

The adjudicator also extended the planned completion date beyond the date when works were actually finished, according to the writ.

But he failed to take into account that Costain had already been awarded a time extension, the court will hear.

Costain completed the £19.4m contract at the end of 2002.