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Tube Lines loses £34m London Underground PPP claim

17 Mar 10 Tube Lines has lost its second big compensation claim in as many months against London Underground.

Tube Lines has lost its second big compensation claim in as many months against London Underground.

The PPP infrastructure maintenance contractor had sought £34m over LU's alleged failure to deliver trains to the right depot for night-time maintenance on the Northern line.

Tube Lines argued that a new timetable had a negative impact on its profit from the PPP, and sought an adjudication.

But independent QC Mr Stewart Boyd dismissed Tube Lines’ latest claim, and ordered the firm to pay LU’s costs and those of the adjudication process.

A spokesperson for Transport for London, LU’s parent company, said: “It is hugely frustrating that, having celebrated the improvement in reliability on the Northern line in public, Tube Lines and its shareholders, Ferrovial and Bechtel, were drawing up claims against the public purse totalling tens of millions of pounds in private.

“We are, therefore, very pleased that this unwarranted £34M claim has been dismissed in its entirety, as was Tube Lines’ previous £327M claim.”
 

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