Defending a £5m contractor damages claim

We were commissioned to defend a UK-based mechanical, electrical and plumbing (MEP) specialist engineering contractor against a claim for a breach of the subcontract. The company, which has a turnover of £600m, faced significant financial risk as a result of the claim.

Defending a contractor damages claim

Our client was subcontracted to provide circa £12m of MEP works on a project in London. It received a claim from the main contractor stating that it was liable to pay £5m in damages due to delayed work, and that £3m would be withheld from its payment. The financial risk hadn’t been accounted for, so our client’s business plan expectations were immediately impacted.

Putting a plan into action

The first step in the process was to review the extensive documentation provided by the main contractor in order to identify weaknesses in the claim. We carried out an initial appraisal and created an action plan with stakeholders and personnel organised into workstreams.

Each workstream was assigned its own actions and we held structured workshops with the relevant personnel to ensure all outcomes were met. We collated the information and prepared a detailed response with reports, covering contractual issues, delays, and the quantum of the contractor damages claim.

All key points were covered and the response was submitted to the main contractor.

Informing better business planning decisions

We reviewed all documentation, held workshops, and submitted a comprehensive response within 4 weeks of the claim being received.

Our work led to increased stakeholder confidence in the company’s executive team and has informed negotiations with the main contractor.