Construction giant Mowlem plc is suing Stena Line Ports Ltd in a dispute over the contract for a marine project in Holyhead, Anglesey.
The claimant is seeking a High Court declaration that it should be paid for works in excess of £10m carried out on the Holyhead Marine Terminal.
However, Stena argues that it had agreed to pay only up to a total of £10m for works that had been carried out before 4 July 2003.
Mowlem allegedly began work on the marine port in November 2000, under 12 letters of intent dated between 17 October 2002 and 20 June 2003. It maintains that the letters of intent amounted to an offer and a series of simple “if” contracts, by which Mowlem had agreed to carry out the works and Stena had agreed to pay a reasonable fee.
The final letter of intent committed Stena to pay for work only up until 4 July 2003, and up to the value of £10m. Mowlem is claiming that, under an implied term of the contract, the defendant was required to pay a reasonable fee if it were to permit Mowlem to carry on working beyond that date or if the works were to exceed £10m.
References: EGi Legal News 8/3/04
