Payment row erupts over Cemex concrete plant

A row has erupted over payment for a concrete plant constructed for Cemex in Stepney, London, by McCrory Engineering.

Cemex has withheld 20% of the £1.6m owed to the batching plant specialist, claiming that the plant isn’t delivering the required run rates; while McCrory insists it has met its obligation to deliver a state of the art plant.

The disagreement follows the delivery of Cemex’s Kingsmead batching plant, for which the company withheld 10% until completion of the Stepney site.

McCrory sales manager Alan Stewart said. “We’ve built plants for Cemex in Northern Ireland and never had a problem. Now we’ve delivered two fantastic plants in the UK and all I want is payment. “We’re owed over £260,000, which is a lot of money for a family owned company.”

Stewart claimed construction was hampered by design changes at the Stepney site after asbestos was found along with a live substation that the firm hadn’t been informed of.

He said: “The whole design of the tower had to be changed. This takes time and effort that they didn’t recognise. Now we’re told the output isn’t up to scratch.”

Both sides are entrenched, with Stewart adamant the batching plant is capable of producing the required 180-200m3/hr. Meanwhile Cemex insist it is not delivering the contracted run rate.

In a statement Cemex said: “This is a contractual dispute between Cemex and McCrory, which refers to late delivery of plants and failure to deliver on agreed specifications. The plants are, however, fully operational, and serving a number of customers in the London market.

“Throughout the project, Cemex has complied with contractual arrangements regarding payment terms. “Cemex is currently withholding the commissioning payment in line with the contract, which is due on completion of the work, as there are still a number of outstanding issues that need to be resolved before the plants can achieve the contracted run rates and outputs.”