Risk Review Prepared for a Mechanical and Electrical Specialist Subcontractor

Type of Project – Hospital in the West Midlands

RM’s client was a specialist subcontractor with a subcontract sum of around £5m. The subcontract was a standard form of DOM/1, 1980 Edition including Amendments.

Description of Issues

RM prepared a Risk Review for a mechanical and electrical specialist subcontractor on its final account valuation and a loss and/or expense (damages claim). RM reviewed 63 lever arch files in preparing the Risk Review.

Entitlement or Liabilities

The specialist subcontractor was claiming £1.1m. RM’s valuation, based on the information produced by the subcontractor, amounted to £200k – £300k only. The specialist had failed to demonstrate entitlement to additional money and time.

Assistance to the Specialist Subcontractor

RM’s Risk Review assisted the specialist subcontractor in making sound commercial and contractual decisions. The result of the Risk Review was a pre-requisite to the specialist subcontractor pursuing its claims in adjudication. The specialist subcontractor returned to the negotiating table and settled the account at circa £250k and avoided an expensive and disruptive adjudication process.

Monies Involved

Specialist subcontractor’s valuation £5.7m, RM’s valuation £4.85m.