Image: www.viridor.co.uk
Interserve owes £69m for a troubled waste-to-energy plant in Glasgow, the parent company of its client Viridor has claimed.
Interserve was the original contractor on the energy recovery facility but was replaced by Doosan Babcock in early 2017 after delays and cost overruns.
Completion was originally scheduled for 2016 but the project is still ongoing and Viridor’s parent firm Pennon Group estimates that cumulative spend on the job is now £238m, as compared to the original target of £155m.
In its annual results for the year to 31 March, Pennon Group said: "Viridor is contractually entitled to recover incremental costs from the original principal contractor, Interserve, under certain circumstances.
"Discussions with Interserve are ongoing with regard to the contractual settlement. At 31 March 2018 a receivable of £68.7 million has been recognised."
An Interserve spokesman said: "It’s not our place to comment on how much it woul cost or how long it will take Viridor to complete the facility compared with our own expectations."
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Various major project problems would appear to the norm for the British Construction industry these days. This does raise questions as to the ability of management these days
The industry needs to review how they design of the Waste-to-energy plants. Every time these things are built the design process starts again from scratch, yet the basic containment, function, and process of waste conversion is the same. Okay, there are a few options and variations on the theme but it’s not something that has not been done before.
The point is that this could be standardized based on the hundreds of projects that have already successfully been built; a modular approach to ERP design is both possible and practical. It also more economical and efficient.
It is hardly surprising that things do go wrong.