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Steel firm Severfield Rowen wins row with contractor
8:10am Friday 11th January 2013 in Business news
A NORTH Yorkshire steel business has won a legal row with a subcontractor over delays and defects on the Shard in London.
Severfield Rowen Structures, based at Dalton, near Thirsk, subcontracted Cleveland Bridge, a Darlington-based company, to fabricate and supply steel for the first nine levels of the iconic skyscraper, which was completed in 2012 under a £426 million contract.
However, according to Construction News, a judgement handed down by Mr Justice Akenhead found that Cleveland Bridge “had taken on more work than it had the capacity to deal with”, and had subcontracted out its workload too late, causing delays of 38 days.
Cleveland Bridge was ordered to pay £824,478 to Severfield Rowen by the judge, although it was awarded £928,472, plus VAT, from Severfield Rowen in fees due under the contract.