Contractor CH Pearce is locked in a dispute with the Royal Orthopaedic Hospital in Birmingham that could cost the NHS trust almost £1.6m.

The contractor was successful in an adjudication last October over a £13.6m annex, which was 16 months late. The adjudicator awarded Pearce £1,593,494 to be paid within a week, according to a High Court writ.

But the trust failed to pay and Pearce could go to court to claim the money owed, plus interest.

However, the dispute is more likely to end in the trust paying less money to Pearce, as the contractor is keen to strike a deal out of court.

A spokesperson for Pearce said the company hoped the case would not go to the High Court and that it was working with the NHS trust to settle the final account.

The three-ward, 72-bed centre was delayed because of problems with the water flow.

Interserve Industrial Services is suing Cleveland Bridge UK for £1,529,323 after an adjudicator’s decision. Interserve is asking the High Court to enforce the decision made on 14 November and corrected or clarified later.