黑洞社区

Galliford Try is facing legal action from subcontractors looking to claim more than 拢11m as a result of problems on the final phase of the 拢700m London 2012 athletes鈥� village project.

黑洞社区 understands three subcontractors - concrete specialist Reddington and envelope contractors Prater and MPG - have begun legal action in relation to issues arising from delays on the final two plots of the village, N13 and N26. 黑洞社区 understands claims could amount to more than 拢11m.

A fourth subcontractor, scaffolder Benchmark, is understood to be in negotiations with Galliford Try over a further sum, believed to be about 拢2.5m.

The two plots - together worth 拢80m and representing 14 blocks and 423 units according to construction data company Barbour ABI - hit delays from the outset of the project.

Last year 黑洞社区 revealed the overall athletes鈥� village construction manager Lend Lease missed the original handover date of 31 October for the plots to the Olympic Delivery Authority (ODA).

The plots were finally handed over to the ODA on 12 December, although sources close to the project said work to overcome snags and defects was ongoing.

The ODA said work on the plots was 鈥渢emporarily stopped鈥� shortly after construction began in summer 2010 to investigate an accident on the site, but added that nobody was injured.

It is understood one of the subcontractors is already involved in adjudication with Galliford Try, while the other two have brought in lawyers to work on claims.
Galliford Try鈥檚 construction business turned over 拢499.9m in its first half results to 31 December and made a profit of 拢10.9m over the period.

The firm, which is listed on the London Stock Exchange, declined to comment on whether the disputes would have an impact on forecasts for its performance.

In a letter Galliford Try sent to one of its subcontractors in December, seen by 黑洞社区, the contractor stated its intention to 鈥渞ecover and deduct鈥� monies from  the subcontractor arising from its alleged failure to complete subcontract works and other alleged 鈥渟nags and defects鈥�.

A Galliford Try spokesperson said: 鈥淕alliford Try is currently involved in discussions with several subcontractors on the athletes鈥� village project.

鈥淲e are unable to comment further until these differences of opinion are resolved.鈥�

Prater said it was 鈥渓ooking to negotiate鈥� a solution with Galliford Try. A Benchmark director said the firm was 鈥渕aking every effort to resolve our differences鈥�. A spokesperson for Reddington said 鈥渨e never discuss commercial issues鈥�. MPG declined to comment.