Firm pays out to settle a 拢9.9m High Court dispute over alleged failings on an abandoned tower project in Manchester
Faithful+Gould has paid out 拢3.35m to the Bank of Ireland to settle a 拢9.9m High Court dispute over the consultant鈥檚 alleged failings on an abandoned tower project in Manchester.
The Bank of Ireland sued Faithful+Gould (F+G) in 2012, claiming the firm failed in its duties as the bank鈥檚 quantity surveyor on Issa Developments鈥� 拢25.6m 24-storey Sarah Tower.
Work halted on the 24-storey tower in 2008 after contractor BS Construction fell into administration. Bashar Issa - the owner of Issa Developments and BS Construction - was declared bankrupt a year later.
The Bank of Ireland - which provided the majority of funding for the development and approved a 拢15m loan facility for Issa Developments - claimed that F+G failed to effectively appraise project risks and the capabilities and financial strength of contractors, and did not effectively monitor progress.
In its defence F+G said it gave the Bank of Ireland sufficient warning of the risks before and during the process.
Details of the 拢3.35m settlement, paid by F+G to the bank in January, emerged this month in a High Court judgment on a subsequent Part 20 claim by F+G against property agent CBRE in an attempt to recover some of its losses on the job.
Mr Justice Edwards-Stewart ruled