AE Yates Trenchless Solutions and Gleeson clash over water main work

Tunnelling and drilling contractor AE Yates Trenchless Solutions has launched a legal battle in a dispute over a water main in Dawlish, Devon.

Main contractor Gleeson Construction Services carried out work at Burrows Water Treatment Works in Dawlish to install 600m of water main beneath Dawlish Water and adjacent roads.

AE Yates carried out directional drilling as subcontractor for Gleeson, and started work on 6 February 2006, according to a High Court writ.

But within days, unforeseen ground conditions were met, and a dispute arose over contractual provisions for recovery of costs and losses due to adverse ground conditions, the writ says. Under an agreement in June this year, Black & Veatch has taken over Gleeson’s position and is sued in its place.

In October 2005, AE Yates had put forward three tenders of around £220,000 for the work, pricing it for three different scenarios, the writ says. AE Yates says a binding subcontract came into being in November 2005, in which it agreed to carry out work for £212,1525, and seeks a declaration to that effect.

Under that subcontract, entry and exit pits, and excavations to recover equipment or remove obstructions were the responsibility of Gleeson and not included in the price, the writ says. Gleeson was responsible for all design, and setting out, and liquidated damages were limited to £500 a week, it is alleged. AE Yates also seeks declarations to that effect.

AE Yates says it did not accept an offer of a letter of appointment by Gleeson.