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Mon May 27 2024

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Engie and roofers settle legal dispute

8 Jul 22 A construction dispute between Engie and a Durham roofing contractor has been settled for £600,000.

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Engie launched legal action against Springs Roofing costs in December 2021, demanding £1.9m plus costs.

The claim related to roofing work undertaken by Springs over a two-year period from April 2009 to March 2011 on eight separate care homes.

Engie had experienced performance issues with various aspects of the buildings, including their roof coverings, and subsequently employed Springs to re-roof all eight properties at normal commercial rates.  Springs' directors believe the performance issues were caused by problems with the design of the buildings for which Springs had no responsibility.  The re-roofing work was carried out to a different specification to the original contract with different materials being used.  

Engie subsequently made a claim under its insurance policy in respect of the rectification work.  Springs directors, backed by third party technical and legal advice, believed the claim was without merit.

The two parties agreed to settle for £600,000. Springs parent company, Northern Bear plc, explained: “In reaching the agreed settlement set out above, the board and the Springs directors considered, in conjunction with its legal advisers, the management time likely to be involved, the future legal costs which would be incurred in defending the claim, including a sizeable sum which would have been irrecoverable should Springs have successfully defended the claim, and the commercial risk of any matter of litigation.”

It added: “Springs and Northern Bear's other subsidiaries retain excellent commercial relationships with Engie's regional and national management team. As such, Engie continues to be an important and valued customer for the group.”

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