Viridor has served a notice of termination on the principal contractor for its Glasgow energy-from-waste (EfW) scheme, saying it had “continually and repeatedly failed to meet delivery milestones”.
The development came in an update to the City from Interserve. Both Interserve and Viridor are now understood to be talking to advisers about their legal options.
The project was originally due to complete in March this year but it is understood that Interserve no longer expects to be able to meet a March 2017 completion date. A Viridor spokesman told MRW sister title Construction News that the company had “moved to protect” the project.
Construction began in 2013 at the council’s long-established waste treatment plant at Polmadie, commissioning commenced in May, with waste processed since July 2016.
Viridor is no longer able to tolerate further impacts on this important environmental project
Viridor capital projects director Alan Cumming
Viridor capital projects director Alan Cumming said: “While commissioning is now well underway, our contractor Interserve has continually and repeatedly failed to meet delivery milestones. Viridor has made every effort to avoid this highly regrettable action.
“That said, against a backdrop of Interserve continuing to report further delays, Viridor is no longer able to tolerate further impacts on this important environmental project.”
Viridor stressed it was fully committed to delivering the project and would “work with key stakeholders to encourage Interserve to offer every support to their employees and affected supply chain”.
It added: “Following formal legal termination of our contract with Interserve, we will move to implement a full, professional delivery team, mitigating where possible impacts on the existing supply chain.”
Problems on the Glasgow job were said to relate to the design, procurement and installation of the gasification plant. Interserve said this, combined with “continuing challenges with the supply chain”, was resulting in further cost overruns and delays.
In July, Energos, the technology supplier for the Glasgow facility, went into administration.
In August, Interserve announced it would quit the EfW sector after problem contracts forced it into a £34m half-year loss. The contractor has six jobs in the sector, with whole-life revenue of £430m between them.
A recent trading update said “significant risks” remained in its EfW business.