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BALFOUR BEATTY REGIONAL CONSTRUCTION LTD v VAN ELLE LTD

Construction Law Reporter

BALFOUR BEATTY REGIONAL CONSTRUCTION LTD v VAN ELLE LTD

Formation of contract – Identification of the terms of the contract

The claimant was the main contractor on a project in Newcastle. It was engaged to design and construct a sub-sea cable manufacturing facility, which included a building which housed a Vertical Helix Assembly Machine (VHAM) and two carousels (known as the North and South Carousels). The structures required a considerable amount of foundational piling. The claimant engaged the defendant to carry out the piling work, which included piling for the VHAM Building and the North and South Carousels. Shortly after installation, excessive settlement was discovered at the North Carousel piling. The claimant agreed with the employer to carry out remediation works without prejudice to the question of liability. The employer then brought a business interruption claim against the claimant, and the claimant in turn brought the present proceedings against the defendant to recover its remedial costs and to obtain an indemnity against any liability it may incur to the employer.

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