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Fri September 18 2020

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National Grid rips up Costain’s compressor contract

29 Jun Costain has come unstuck on a contract to rebuild two compressor stations for National Grid.

Contractor and client have now parted company after failing to agree terms for seeing the project through to completion.

National Grid gave Costain a £113m contract in 2016 to design, decommission, build and re-commission its compressor stations in Peterborough and Huntingdon to reduce emissions. Each site requires the installation of two new 15MW gas turbine compressors.

Costain said that its contract “had experienced significant change and additional scope, which had impacted on the forecast target cost and schedule for the completion of the works”.

Heading off any suggestion that it was being kicked off the job, Costain said that “both parties have mutually agreed to exit the contract and release Costain from its contractual obligations to complete the works”. 

It said that the termination agreement includes an agreed scope of work to be completed after termination and the commercial matters to be resolved through a continuing commercial resolution process

Costain is expected to complete demobilisation by 31st August 2020.

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