Risk Review Prepared for a Ground Worker Specialist Subcontractor

Type of Project – University Student Accommodation

RM’s client was a ground worker with an initial subcontract sum of £94k with terms and conditions that were bespoke to the main contractor and riddled with onerous terms and condition precedents. The subcontract was complex and incorporated several sums in the serial based subcontract.

Description of Issues

RM was required to prepare a risk review in respect of valuation matters, withholding items and delays.

Entitlements or Liabilities

The main contractor had made an informal offer to settle the account with a further payment to cover all outstanding matters in the sum of £90k. The subcontractor’s quantity surveyor was seeking to recover an additional sum of £160k.

Assistance to the Specialist Subcontractor

RM’s risk review identified that the claim made by the ground worker was unrealistic and the valuation of any further payment was likely to be £70k.

RM advised the ground worker to return to the negotiation table and accept the £90k previously offered by the main contractor.

The specialist subcontractor was also advised that the (CBA) would indicate that no benefit would be achieved by pursuing sums via the adjudication process.

Monies Involved

RM’s client returned to the negotiation table and received a further payment of £90k.