Amey Birmingham Highways Ltd v Birmingham City Council

Amey Birmingham Highways Ltd v Birmingham City Council

The service provider was under a contractual duty to keep the Project Network Model, including the MINV and MSEC tables, updated with actual inventory data as it became available, not merely to rely on the initial default data. The milestone certificates 6 to 9 were based on erroneous calculations due to the failure to update the PNM and are therefore set aside for manifest error.

Parties
Claimant/respondent: Amey Birmingham Highways Ltd; Defendant/appellant: Birmingham City Council
Jurisdiction
England and Wales
Judgment Date
22 February 2018
Procedural Posture
Civil Appeal (contract/construction) / Court of Appeal Judgment on Appeal From Technology and Construction Court
Outcome
Appeal allowed. Declarations to be made in favour of Birmingham City Council as per the adjudicator's original decision.
Legal Topics
Interpretation of PFI Contracts, Obligation to Update Project Network Model, Setting Aside Certificates for Manifest Error
Contract Law Construction Law Public Procurement Interpretation of PFI Contracts Obligation to Update Project Network Model Setting Aside Certificates for Manifest Error

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Parties

Amey Birmingham Highways Ltd

Claimant/respondent

Birmingham City Council

Defendant/appellant

Procedural Posture

Civil Appeal (contract/construction) / Court of Appeal Judgment on Appeal From Technology and Construction Court

Legal Issues

  1. 1 Whether the service provider was required to update inventory details in the Project Network Model (PNM)
  2. 2 Whether milestone certificates 6 to 9 should be set aside for manifest error
  3. 3 Extent of the service provider's obligations under the PFI contract

Ratio Decidendi

The service provider was under a contractual duty to keep the Project Network Model, including the MINV and MSEC tables, updated with actual inventory data as it became available, not merely to rely on the initial default data. The milestone certificates 6 to 9 were based on erroneous calculations due to the failure to update the PNM and are therefore set aside for manifest error.

Court Disposition

Appeal allowed. Declarations to be made in favour of Birmingham City Council as per the adjudicator's original decision.

Orders

  • Milestone certificates 6, 7, 8 and 9 are set aside for manifest error.
  • Declarations to be made that Amey Birmingham Highways Ltd must update the Project Network Model to reflect the actual road network.