Dominic Browne 13 June 2018

Contractor ordered to pay Birmingham £50m in PFI dispute

Amey Birmingham Highways Ltd (ABHL) has been ordered to pay Birmingham City Council more than £50m in compensation after the contractor's loss in the Court of Appeal earlier this year in a long running dispute over a highways PFI, according to reports.

Adjudicator Andrew Goddard QC found in favour of the council’s claim that it had overpaid Amey, as the contractor had not carried out road maintenance work that the Court found it was obliged to.

In February this year, the Court ruled against what it called Amey’s 'ingenious new interpretation' of the 25-year PFI deal it entered into in 2010.

ABHL was 'deliberately leaving the defects in selected areas untreated' the court found and had 'been carrying out works based on inaccurate inventory information'.

In May, Amey's parent company Ferrovial reported it had been forced to set aside around £208m to tackle the possible losses from the Birmingham deal, which had been bogged in dispute since 2014.

Describing their work in Birmingham as 'one of the most capital intensive projects in Europe', a spokesperson for Amey said: 'The ongoing dispute with Birmingham City Council is related to the way in which this investment is allocated to deliver the best possible services and value for money across the city, and we are considering all the available options to help achieve this.

'In the meantime, we continue to deliver our essential service to the city to maintain the safety of the Birmingham roads, and play an active part in the wider local business community.'

Birmingham City Council declined to comment as adjudication decisions are confidential. 

SIGN UP
For your free daily news bulletin
Highways jobs

Administration Officer

Durham County Council
Grade 4 £25,583 - £26,824 Pro-rata
WHATS INVOLVED A vacancy has arisen within Business Services for a temporary Administration Officer. You will provide a comprehensive, robust adminis Spennymoor
Recuriter: Durham County Council

Registered Homes Manager

Durham County Council
Grade 14 £50,269 - £54,495 plus £2,500 recruitment/retention allowance and £3,500 market supplement. The salary with additional payments equate to an earning potential per annum of £60,495 at the top of the grade.
Registered Manager – The Beacon Salary
Recuriter: Durham County Council

Cleaner

Durham County Council
£24,796 pro rata
Cleaner  Full time, 37 hours per week, term time only. Salary Grade 1 (£24,796 pro rata)  Permanent subject to a successful probationary period. Requi Durham
Recuriter: Durham County Council

Operations Manager

Durham County Council
Grade 10 £38,220 - £41,771
Help launch County Durham’s newest cultural landmark. Opening in summer 2026, The Light will bring together art, science, history, creativity and com Durham
Recuriter: Durham County Council

Travel Planning Officer

Durham County Council
Grade 9 - £35,412 to £39,152
We have an opportunity available as a Travel Planning Officer to join our Integrated Passenger Transport Team.   WHAT IS INVOLVED? You will work with Durham
Recuriter: Durham County Council
Linkedin Banner