Barhale hopes to avoid £4m dispute payout

摘要

Barhale is waiting on an arbitration decision that could save the company from a potential £4m payout. The civil engineering contractor expects to receive an arbitration judgment shortly over its dispute with a subconsultant. The case, which began in November 2020, focuses on claims of defective design on an unnamed project. If it is successful, which Barhale's directors expect it will be, then the contractor will avoid having to pay £4m to the client. If its claim fails, then the firm will have to pay the £4m in instalments until December 2023. Barhale had previously been in dispute with the client over design liability until the two parties agreed that it lay with Barhale. The civils firm then began proceedings against the subconsultant over the design. The update on the claim, which Barhale said has been ongoing for "a number of years", was included in accounts covering the six-month period to 30 June 2020.They showed the firm made a small pre-tax loss of £16,000 on revenue of £65.5m compared with a profit of £2m on £76.7m in its previous accounts, which covered the six months to 31 December 2019. Delays to new jobs and pandemic disruption were blamed for the loss. Chief executive Julian Ripley said "the commercial background was made more difficult as clients and suppliers wrestled with uncertainty".