Construction company Heijmans has had an important windfall in a heated arbitration case with grid operator Tennet. In the dispute, which concerns a failed contract for the construction of 131 new Wintrack II high-voltage pylons in Zeeland and Groningen, Heijmans and Tennet are at odds on several points. Monday’s ruling concerned Tennet’s demand that Heijmans pay the costs of terminating the contract.
The Board of Arbitration in Construction Disputes ruled on Monday that Heijmans does not have to do this, and that Tennet must also pay Heijmans compensation for unpaid work. The amount involved has not been disclosed. Heijmans does see it as an important windfall; As a precautionary measure, the builder from Rosmalen has made a provision of 34 million euros for the Wintrack II case. After Monday’s ruling, Heijmans expects that possibly ‘the vast majority’ of this amount can flow back when the half-year figures are presented in July.
The four-year construction of the high-voltage pylons was awarded by Tennet in February 2017 for an amount of 250 million euros. Heijmans would supply the foundations for the masts, the German Europoles would provide the piles. Problems arose during the first year of the project. Tennet was of the opinion that the construction companies did not comply with the agreements on quality and delivery date, and disbanded the contract in October 2018. The termination would have caused a three-year delay and a loss, for which Heijmans and Europoles would have to pay, according to Tennet. According to the latest ruling, this is not necessary.
Appeal
With Monday’s ruling, the Wintrack II case is not over. For example, there is also the question of who should bear the costs that Tennet had to incur after the termination, for example to find a new builder. Heijmans appealed against an interim ruling in May last year, in which the Board ruled that Tennet could unilaterally dissolve the contracts out of court and acknowledged that costs had been incurred.
If Heijmans loses the appeal, it is possible that a substantial amount will still have to be paid to Tennet. Heijmans says it is looking forward to the verdict “with confidence”.