Roadbridge
Civil/Environmental
- Apr 20, 2005
- 116
LIMERICK City Council will find out next week if it was right to sack a contractor on the main sewage scheme and if a €25 million non-binding award against them will be upheld.
The row dates back to November 2001 when Limerick City Council removed Uniform Construction as one of the contractors on the Limerick Main Drainage Scheme because they claimed the company was way behind time in completing it.
The company appealed this decision to a conciliator who found in its favour two years ago and recommended that Uniform Construction be awarded €25 million for being sacked from the contract and the damage this did to its good name.
But crucially, this decision was not binding because no cross-examination was allowed and Limerick City Council appealed it to an arbitrator who heard the case over three months in 2004.
This arbitrator will deliver his decision next week on the question of whether or not Limerick City Council were correct or incorrect to sack this company, according to its Transport Committee chairman Cllr Joe Leddin.
Limerick City Council has prepared a counter claim against the company if the ruling goes in its favour, which is understood to be around the same figure.
But the council’s director of services John Breen stressed yesterday that next week’s decision will only be one of principle - if they were correct or incorrect to sack Uniform Construction.
“Then the arbitrator will decide on the next stage of the process and how the monetary considerations will be finalised - this could take several months,” Mr Breen said.
This row dates back to June 2000 when this company was awarded a €9.5m contract to build a sewage pipe along the northern part of the River Shannon and underwater across to the south side within 18 months. But by early 2001 it became apparent that there were problems when the Limerick City Council site manager assessed the progress and became concerned about the slow progress.
“The company was given a written and oral warning that if they did not expedite the project, Limerick City Council would cancel it,” Cllr Leddin added.
Uniform Construction responded by saying that there were site difficulties and they wanted Limerick City Council to pay for additional site examinations which they refused, according to Cllr Leddin. In November 2001 when Limerick City Council sacked Uniform Construction from the contract only 35% of the work had been completed with just four weeks left to run in the contract.
The row dates back to November 2001 when Limerick City Council removed Uniform Construction as one of the contractors on the Limerick Main Drainage Scheme because they claimed the company was way behind time in completing it.
The company appealed this decision to a conciliator who found in its favour two years ago and recommended that Uniform Construction be awarded €25 million for being sacked from the contract and the damage this did to its good name.
But crucially, this decision was not binding because no cross-examination was allowed and Limerick City Council appealed it to an arbitrator who heard the case over three months in 2004.
This arbitrator will deliver his decision next week on the question of whether or not Limerick City Council were correct or incorrect to sack this company, according to its Transport Committee chairman Cllr Joe Leddin.
Limerick City Council has prepared a counter claim against the company if the ruling goes in its favour, which is understood to be around the same figure.
But the council’s director of services John Breen stressed yesterday that next week’s decision will only be one of principle - if they were correct or incorrect to sack Uniform Construction.
“Then the arbitrator will decide on the next stage of the process and how the monetary considerations will be finalised - this could take several months,” Mr Breen said.
This row dates back to June 2000 when this company was awarded a €9.5m contract to build a sewage pipe along the northern part of the River Shannon and underwater across to the south side within 18 months. But by early 2001 it became apparent that there were problems when the Limerick City Council site manager assessed the progress and became concerned about the slow progress.
“The company was given a written and oral warning that if they did not expedite the project, Limerick City Council would cancel it,” Cllr Leddin added.
Uniform Construction responded by saying that there were site difficulties and they wanted Limerick City Council to pay for additional site examinations which they refused, according to Cllr Leddin. In November 2001 when Limerick City Council sacked Uniform Construction from the contract only 35% of the work had been completed with just four weeks left to run in the contract.
