A property vehicle owned by Urban Splash is suing consultancy Arcadis for £21m over delays to a housing scheme in Salford, Greater Manchester.
The dispute concerns work on the three-block Upton phase of the Irwell Riverside scheme near Trinity Way, developed by special interest vehicle Irwell Riverside Developments Ltd (IRDL)
An update released this summer by the firm’s other partner, Property Alliance Group, said cladding on the 156-home scheme was “nearing completion”.
But a procedural ruling by the Technology and Construction Tribunal last week revealed an ongoing battle over delays caused by design problems discovered more than three years ago.
Arcadis, contracted by the IRDL to design various elements of the buildings, identified a problem with its design for the scheme’s podium slab in June 2020, according to legal documents.
Remedial works have then been required to one block within the scheme which had already had the concrete slab poured, while design changes were required to the other two units.
This month’s legal ruling, which concerned the release of documents ahead of the main case, said it was a “common argument” that design flaws caused a delay in the project. However, the extent of retention is disputed.
The IRDL is claiming “around £21m” in the matter, Assistant Judge Neil Moody said. In addition to damages for delay, the claim includes the cost of remedial works, lost sales and other development opportunity, and extended finance charges.
Expanded disclosure from both sides was required under case management instructions agreed to in December 2022, the latest ruling said.
But Arcadis complained that IRDL had not captured the relevant documents, which was refuted by the development vehicle, which said there was “nothing more they can or should do,” according to Moody’s summary.
The judge ordered certain additional searches, noting that “the new approach to disclosure in business and property courts relies heavily on the cooperation of the parties.”
Urban Splash’s 50 percent stake in IRDL is in ‘B’ status shares, meaning it has no voting rights and cannot draw dividends.
Urban Splash, Property Alliance Group and Arcadis have been contacted for comment.
