Council settles £590,000 payment dispute with contractor
Summary
Southend-on-Sea City Council has agreed to settle a late payment dispute with Auburn Group by paying almost £590,000 linked to refurbishment works at the Cliffs Pavilion. The project has also been affected by asbestos, slab and foundation issues, with the council noting further works remain outstanding and potential contractual disputes still unresolved.
Why it matters
Surveyors involved in public-sector refurbishment and contract administration will note the interaction between latent site issues, programme extensions and payment disputes. The case also highlights the importance of documenting asbestos findings, structural constraints and certification status where works are ongoing.
Key points
- Council to pay nearly £590,000 to resolve an adjudication over late and/or non-payment.
- Refurbishment at the Cliffs Pavilion was affected by additional asbestos and issues with a 1960s load-bearing slab.
- The council granted extensions of four weeks and 20 weeks due to site conditions.
- Further works remain to be completed and certified, with three potential contractual dispute areas noted.
- The council said continued non-payment would risk further adjudication and legal costs.
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