Bank is suing the consultant for 拢5.7m claiming its work on Gloucestershire project led to huge repair bill

High Court

Global banking giant Barclays is suing consultant Hurley Palmer Flatt for 拢5.7m over the design of a 拢66m data centre in Gloucestershire, which it claims led to numerous problems and a multi-million pound repair bill.

Hurley Palmer Flatt (HPF), which was paid 拢1.4m for work on the scheme, fended off a possible adjudication with Barclays over the 7,000m2 data centre in Barnwood last October, but Barclays has now taken the matter to the High Court.

According to Barclays鈥 claim and HPF鈥檚 defence, both filed at the High Court and seen by 黑洞社区, the dispute centres on alleged defects in HPF鈥檚 design of a chilled water system used to prevent servers in the data centre from overheating.

According to both sides, HPF was design team leader on the project.

In Barclays鈥 claim, the bank alleges HPF鈥檚 鈥渘egligent鈥 design led to 鈥渘umerous failures鈥 of components in the chilled water system once installed, which meant Barclays was unable to use the centre to full capacity and additionally had to undertake costly remedial works to correct the issues.

HPF strenuously denies claims of negligence.

HPF claims any problems with the chilled water system that arose were not caused by failures in HPF鈥檚 design, and additionally that although it was design team leader, the design was 鈥渓argely but not exclusively the responsibility of HPF鈥.

HPF claims it was 鈥渃ontractually obliged鈥 to comply with designs for the chilled water system drawn up by M&E consultant MEIT, which it says was employed by Barclays prior to HPF鈥檚 involvement. MEIT denies HPF鈥檚 claim, saying HPF had 鈥渇ull responsibility鈥 for the design.

HPF further claims Barclays鈥 remedial works were 鈥渆xcessive鈥 and that any problems with the chilled water system could have been rectified more cheaply and more straightforwardly by simply modifying or replacing water pumps.

Laing O鈥橰ourke subsidiary Crown House Technologies carried out the initial 拢65.5m contract to build the data centre.

Barclays鈥 拢5.7m claim against HPF includes 拢810,000 for costs incurred due to component failures, 拢1.2m for increased power consumption costs, 拢3.1m for remedial works - designed by consultant RED and carried out by contractor Interserve - and VAT and interest costs.

Barclays claims the remedial works carried out by Interserve resolved the issues with the chilled water system.

When contacted by 黑洞社区, HPF and Barclays declined to comment further.

A spokesperson for MEIT, which is not formally a party to the proceedings, said the firm 鈥渟trongly refuted鈥 the accusation made by HPF regarding the Barclays legal action.

The spokesperson said: 鈥淗PF were the detailed designers with full responsibility for all aspects of the design as leaders of the professional team on the project.

鈥淭he original design brief was guide only and many aspects of the final installation differed significantly from the concept. The liability of the design is fully with HPF.鈥