Bath council’s accounts have revealed that Grimshaw Architects and Carillion paid out £7m in compensation for the city’s disastrous spa project

The Bath Spa, which sparked one of the longest running construction disputes of recent years, opened five years late and three times over budget because of constant leaks in the spa floors.

The legal wrangle culminated in an out-of-court payment from the project’s architect Grimshaw and contractor Carillion (which bought the spa’s original contractor Mowlem in 2006) to the client, Bath and North East Somerset council.

Until now, the amount was subject to a confidentiality agreement. But a new set of accounts from the local authority show that it received a payment of £2.79m in 2009/2010, which in addition to £4.18m in 2008/2009, makes a total compensation payment of just under £7m.

The council said: “All three parties agree that the settlement reflects a sensible recognition of the costs and uncertainties associated with pursuing litigation.”

The spa opened in 2006, but only after Mowlem had been kicked off the project. The contractor then tried to sue the council, but was counter-sued.

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