Council chiefs 'win first round' in multi-million pound Civic Halls legal battle
Council chiefs say they have "won the first round" in a multi-million pound legal battle with a contractor over the long-delayed Civic Halls project.
Wolverhampton Council is embroiled in a dispute with Willmott Dixon, which took over the contract for the budget-busting scheme in 2019 after original contractor Shaylor Group collapsed.
The Labour-run authority has challenged the firm over its demands for so-called "compensation events", relating to extra costs incurred due to delays with the project.
Now council bosses say adjudicators have ruled in favour of the council on two disputed issues – which would have seen the authority landed with a bill of more than £3 million.
A number of outstanding claims are still being contested by the council, which has taken on top law firm Trowers & Hamlin as representation.
Speaking at a meeting of the council's audit and risk committee, chief operating officer David Pattison said Willmott Dixon claimed to have experienced delays of 73 weeks compared to 45 weeks recognised by the council.
The adjudicator ruled that delays of 45-and-a-half weeks should be recognised, he said.
Additionally, Willmott Dixon was seeking a 100 per cent uplift on "working area overhead" costs. However, the adjudicator ruled there should be no uplift.
Mr Pattison said the claims amounted to a "very substantial level" that would have been "well in excess of £3m".
He told the meeting: "We've had a good result, we've had the first round and critically we will fight very hard to protect the taxpayers' money.
"We have won that first round, that's our assessment of the position and we will carefully monitor it supported by our professional advisors, F&G, external lawyers and expert advisors we've been using during this process."
Chair of the committee, Councillor Craig Collingswood, said the decision meant “the completion of the refurbishment will take place within the agreed current budget”. Last year it emerged costs had ballooned to almost £50m but bosses now say they expect there to be an underspend.
The council cut ties with Willmott Dixon last year and handed the halls over to promoter AEG Presents to complete the job.
After an eight-year revamp, the venue is finally set to open in June and is now called The Halls Wolverhampton.
Willmott Dixon can appeal the decision to the High Court.
