Construction giant Bouygues UK is suing fire protection contractor Sharpfibre for almost £2m, alleging it installed defective cladding at a new Premier Inn.
According to court documents, Bouygues discovered the cladding on the Bedford Riverside Premier Inn when it was asked to conduct a fire inspection in the aftermath of the June 2017 Grenfell Tower fire.
According to a preliminary case management ruling, Bouygues had been working on the development since June 2016, replacing various sub-contractors. Sharpfibre had been involved in the project since the year before.
The hotel was certified as “practically complete” in April 2017, the ruling said. Then, following the Grenfell fire, Bouygues said it “formed the view that the cladding and insulation products that had been installed were not acceptable”.
“It is Bouygues UK’s case that it agreed to undertake works to remove and replace the cladding and insulation at Bouygues UK’s own cost,” the ruling said.
“Having reached that agreement, Bouygues UK then claimed against Sharpfibre that the cladding and insulation products were non-compliant with the requirements of the Building Regulations and were non-compliant with the sub-contract. It is Bouygues UK’s case that Sharpfibre was fully contractually responsible for the design of all the sub-contract works.”
“The amount of the claim brought by Bouygues UK against Sharpfibre is in excess of £1,950,000,” the ruling said.
Sharpfibre disputes Bouygues’ claims.
The case is being managed by Deputy High Court Judge Roger Her Haar QC, and his preliminary ruling, which was mostly over disclosure and costs, was handed down today.
It is possible that the legal costs of this dispute will amount to more than the money sought. According to the ruling, Bouygues estimates its own legal costs as more than £1.5m.
In the UK, the loser is liable for the winner’s legal fees.
Bouygues (UK) Ltd v Sharpfibre Ltd
Christopher Reid (instructed by Mayer Brown International LLP) for the claimant Paul Cowan (instructed by Kennedys Law LLP) for the Defendant Ben Patten QC. (instructed by Clyde & Co LLP) for the third party (Montford Pigott LLP)
Technology and Construction Court (QBD) (Mr Roger Ter Haar QC Sitting as a Deputy High Court Judge) 27 May 2020
