Nottingham Express Transit Phase 2, Nottingham – Vinci Construction UK

VCUK were in joint venture with Alstom for the construction of Phase 2 of the Nottingham Express Transit (NET2), a newly built tram line from the centre of Nottingham to the suburbs. Alstom provided the track, signalling and trains; VCUK carried out all of the civils and building works. A bespoke form of contract existed between the JV and the client and another bespoke form was drawn up for the JV agreement.

The project ran significantly late and, with LADs being applied, a dispute arose between the JV partners as to who was at fault for the delay and, therefore, liable for the damages. Additionally, claims arose between the JV partners as to the cost of services and/or works each said they had provided or carried out that were the other’s responsibility. These became referred to as ‘cross charges’ and amounted to circa £40m in each direction.

MWCS was engaged as part of a team working with VCUK and its legal advisers to pursue these cross charge claims via arbitration and to defend against similar claims brought by Alstom. This was a significant piece of work, involving key members of staff and others for over 2 years. A number of arbitration actions were brought by both sides before the dispute was ultimately resolved.