Homebuilder Bellway Homes is suing North East construction company Surgo for more than £1m over a high-profile housing development in Ponteland, Northumberland.
According to papers filed at the Technology & Construction Court (TCC) in London, the companies are in dispute over payment for the redevelopment of the former headquarters of Northumbria Police.
The Bellway North East development was completed earlier this year. It consisted of 158 new homes and the restoration of Grade II buildings, providing a further 22 homes.
According to the filing, the work was done under an JCT Intermediate Build Contract between Bellway and Surgo signed in October 2019.
In January, the court papers say, the companies fell into dispute over the final value of the completed project and the final sums due.
According to the filing, Bellway valued the project as worth around £8m while Surgo’s valuation was around £13m. Under Bellway’s valuation, it had overpaid Sugo by around £3m. The case went to arbitration and in May an arbitrator ordered Surgo to repay Bellway around £1m.
According to the filing, Bellway subsequently filed in the TCC for enforcement of the arbitration decision. The case is currently going though the court system.
Bellway Homes v Surgo Construction Ltd. High Court (TCC)
