The country’s two biggest infrastructure projects face key court battles this month.
Heathrow Airport Ltd heads to the Supreme Court in its bid to overturn a previous court ruling which effectively ended its expansion plans.
Meanwhile, on the same day, Bechtel and HS2 Ltd will appear at the Technology & Construction Court to settle their long-running dispute about the procurement of the Old Oak Common station contract.
Transport Acton Network’s case against the DfT’s £27bn roads building plan (RIS2) was also scheduled to be heard in October, however that has now been postponed until later in the year.
Heathrow Court case
Court: Supreme Court
Start date: 7 October
Background:
In May Heathrow Airport Limited (HAL) secured permission by the Supreme Court to legally challenge the Court of Appeal’s decision that halted its plans for a third runway.
The Court of Appeal ruled out the plan after declaring the Airports National Policy Statement, which underpinned the expansion, was unlawful as it did not to take proper account of the UK’s commitments on climate change.
HAL vowed at the time to appeal the decision despite the government declaring that it would not, making it clear that the third runway is a private project.
While Heathrow’s passenger numbers and flight have been affected by the Covid-19 pandemic, the airport’s chief executive John Holland-Kaye said said that a third runway at Heathrow Airport remains “a critical economic plank for the growth of the country”.
He said that the affects of Covid-19 may delay the need for the runway but that it was still vital.
Holland-Kaye’s statement came after the Civil Aviation Authority concluded that Heathrow’s expansion plan was “unlikely” to be restated in the “short term”.
The CAA has since revealed that HAL has already spent £500M in early construction and planning costs associated with the expansion.
HS2 Ltd vs Bechtel case
Court: Construction & Technology Court
Start Date: 7 October
Background:
Bechtel lodged its legal challenge in February 2019 claiming that HS2 Ltd accepted an “abnormally low bid” when it awarded its contract for Old Oak Common construction partner to BBVS – a joint venture between Balfour Beatty Group, Vinci Construction and Systra.
The Part 7 claim initially prevented HS2 Ltd from signing contracts with BBVS. Bechtel dropped the challenge in August 2019, meaning contracts could be signed. Main construction is now underway at the West London site.
Despite dropping its challenge against the lifting of the suspension order, Bechtel is still pursuing legal action for damages, with a three week trial now set to start on 7 October, with evidence hearings due to conclude on 22 October.
Two days of oral closings will then take place in November, although a date has yet to be set.
The claim centres on the procurement process leading to the award of the contract, with Bechtel questioning BBVS’ capacity to carry out the job.
High Court papers obtained by NCE last year reveal that Bechtel believes that HS2 Ltd had “clearly reached a conclusion” that the tender submitted by BBVS “was severely under-resourced and posed a real risk to the safe and timely completion and handover of Old Oak Common Station”.
In addition, it claims that HS2 Ltd should have identified the BBVS tender as appearing to be “abnormally low” and should have excluded it from the bid race on that basis.
But HS2 Ltd hit back in its own court submission, denying the allegations made by Bechtel, saying it has the power to adjust the resourcing of the winning tenderer prior to contract award. In particular it says that there is no basis for identifying BBVS’ tender as abnormally low.
HS2 Ltd’s official defence document submitted to the court denies “each and every allegation” in Bechtel’s claim.
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