Costain and National Grid have been embroiled in litigation since the civil engineering contractor departed the Peterborough & Huntingdon project in June 2020 following a significant change in scope.
It was revealed in December that, following a judication reversal, Costain expected to pay National Grid £53.5m in January. In the event, Costain has instead made a full and final payment of £43.4m to National Grid.
National Grid gave Costain a £113m contract in 2016 to design, decommission, build and re-commission its compressor stations in Peterborough and Huntingdon to reduce emissions. Each site required the installation of two new 15MW gas turbine compressors.
The settlement agreement brings an end to the dispute after the contract was mutually terminated and prevents any further claims under the contract.
In its announcement to shareholders today, Costain added that it had made a good start to the year and looked ‘forward to the future with confidence’.
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