Galliford Try is poised to instigate formal dispute resolution procedures if it fails to reach agreement on a “significant claim” against Transport Scotland over the Aberdeen bypass project.
In a trading statement this week the company confirmed it had completed restructuring of its construction business and revealed a current order book of £2.9bn (2018: £3.3bn) with 88% of revenue secured for the new financial year (87%).
“The Aberdeen Western Peripheral Route is complete and delivering economic benefits to the region and receiving a positive reaction from all stakeholders. The joint venture [with remaining partner Balfour Beatty] continues to negotiate on the significant claim with the client, while preparing to pursue this through formal dispute resolution should these talks not reach a satisfactory conclusion.”
The house building, regeneration and construction group said it continues to trade well and expects to report full-year profit before tax in line with expectations.
Chief executive Graham Prothero commented: “We are pleased that the restructure of the Construction business is now complete. The business is now firmly focused on its core strengths of regional building operations, together with profitable operations in highways and water, all of which are now performing effectively.”
The Scottish Government has previously stated it is not prepared for the public purse to pick up cost over-runs incurred by contractors.
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©Scottish Plant. Article posted 16/7/2019