Independent Quantum Expert Review of Maintenance Contract

Following Amey plc’s acquisition of Herefordshire Jarvis Service in 2007, it took on responsibility for a US$268 million highways repair and maintenance works contract across Herefordshire.

During the course of the contract, a dispute arose between Amey and Herefordshire District Council over increases of work rates that should be applied. The rates had been designed to take into account inflation over the contract period. The dispute led to adjudication proceedings between the two parties. The outcome and some of the calculations arrived at in the adjudication were both challenged by Amey in the High Court.

Brief

HKA was engaged by Herefordshire District Council to provide an independent review and assessment of the quantum claim brought by Amey.

What we did

Our team reviewed the basis of Amey’s calculations used in relation to increases in their charges to the council, drawing on skills in:

• Claims analysis / management
• Adjudication support
• Dispute resolution

Outcomes

Following Amey’s challenge of the adjudication in the High Court, the consequence was that Amey was ordered to repay US$12.4 million, as the sum found by which Hertfordshire District Council were said to have overpaid Amey for works during the contract period.