Energy and waste management firm Viridor is starting the process to terminate its contract with Interserve on the Glasgow Recycling and Renewable Energy Centre (GRREC) project.
The company said Interserve, the main contractor for the construction and engineering of the facility, has “repeatedly failed to meet contracted delivery milestones”.
Construction started on the facility in 2013 and it was commissioned in May 2016. Viridor said Interserve is now reporting a forecasted failure to meet a contracted long-stop construction completion date. As a result, Viridor will start a contractual process to terminate its contract with Interserve.
“Whilst commissioning is now well underway, our contractor Interserve has continually and repeatedly failed to meet delivery milestones. Viridor has made every effort to avoid this highly regrettable action. That said, against a backdrop of Interserve continuing to report further delays, Viridor is no longer able to tolerate further impacts on this important environmental project,” said Viridor capital projects director Alan Cumming.
“Viridor remains fully committed to delivering this world-class facility and we have the expertise to do so; as demonstrated by the delivery of six energy recovery facilities across the UK in the last 18 months.
“We are liaising with key stakeholders to encourage Interserve to offer every support to their employees and affected supply chain. Following formal legal termination of our contract with Interserve, we will move to implement a full, professional delivery team, mitigating where possible impacts on the existing supply chain.”
Interserve has confirmed that it has been served notice of termination on the project. It announced its exit from the energy from waste sector in August.
“We are assessing the implications of this development with our legal advisers and will issue a further update in due course,” said the company in a statement.