QUEEN'S BENCH DIVISION
TECHNOLOGY AND CONSTRUCTION COURT
Strand, London, WC2A 2LL |
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B e f o r e :
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THE BOARD OF TRUSTEES OF NATIONAL MUSEUMS AND GALLERIES ON MERSEYSIDE |
Claimant |
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- and - |
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AEW ARCHITECTS AND DESIGNERS LIMITED |
Defendant |
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- and - |
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PIHL UK LIMITED and GALLIFORD TRY CONSTRUCTION LIMITED (trading together in partnership as a Joint venture "PIHL GALLIFORD TRY JV) |
Third Party |
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Paul Reed QC and Brenna Conroy (instructed by Plexus Law) for the Defendant
Jonathan Lee (instructed by Pinsent Masons LLP) for the Third Party
Hearing dates: 22-25, 29-30 April, 1-2, 7-9 May and 10 June 2013
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Crown Copyright ©
Mr Justice Akenhead:
Introduction
Item No and Description | Amount |
CEILINGS POST OPENING | |
A. 2. Flat Ceilings | £22,683.44 |
B 1.1 Floor Protection | £10,155 |
1.2 Display case/object protection | £19,200 |
1.4 Removal of exhibition items | £5,000 |
1.5 Lutyens special protection | £2,500 |
1.6 Hoardings/barrier on the first floor | £1,500 |
2.1 Remove light fittings and track (part) | £7,741.41 |
2.2 Temporary Lighting | £1,663.28 |
2.4 Removal of AV equipment | £5,000 |
2.7 Installation of AV equipment (part) | £10,000 |
2.10 Reconnect electrics (part) | £4,500 |
2.13 Cleaning up after works | £5,000 |
2.14 Sparkle clean prior to reopening | £9,000 |
2.16 Site logistics & prelims | £15,000 |
Sub-Total | £118,943.13 |
Add Contingency @ 10% (agreed by experts) | £11,894.31 |
Sub-Total | £130,837.44 |
Add professional fees at 15% (agreed by experts) | £19,625.62 |
Sub-Total | £150,463.06 |
4.2 Specialists Installation advice (J Birch) | £2,500 |
Sub-Total | £152,963.06 |
C. CEILINGS PRE-OPENING | |
1. Initial clearing up/removal of the rest of ceiling | £4,731.22 |
2. electrical fittings (Creative City) | £4,042.36 |
3. Removal of ceiling in Peoples City | £4,996.58 |
4. Removal of all electrical fittings in Peoples City | £3.699.05 |
5. Temp lighting (Creative/Peoples Cities) | £1,663.28 |
7. Reinstall Base Build lighting (Creative City) | £23,662.61 |
9. Reinstall Base Build lighting (Peoples City) | £23,289.03 |
10. Replacement of damaged track (Creative City) | £10,845.27 |
12. Removal of ceiling in School Lunch Area/Community Base | Nil |
13. Removal of track in School Lunch Area/Community Base | £1,705 |
15. Remove light fittings in schools lunch area | £2,517.54 |
17. Move Fire cryers | £2,939.50 |
18. Creative City - test/review lighting in suspended cylinders | £199.48 |
20. Set works abortive time | £5,830 |
24a. Removal of cylinders | £1,139.93 |
24b. Staff costs | £7,205 |
25. Display Costs | £2,554.50 |
27. Flexible exhibition systems | £10,090.46 |
28b. Repairs to damaged graphics | £9,685 |
29a. Repairs to set works | £4,725 |
29b. Repairs to cylinders | £5,435 |
29c. Repairs to cylinders | £10,260 |
30. Interactive | £265 |
32. High Level decorating | £13,115.40 |
Sub-Total | £154,596.21 |
Total of all items above | £307,559.27 |
Pre-opening Costs
6. Reinstall Base Build Lighting in Creative City
8. Reinstall Base Build Lighting in People's City
11. Replacement of emergency light fittings
14. AV Hardware initial impact
16. Peoples City - reinstallation of lighting
19. Patton Heritage cleaning team
21. Cost management – ceiling works
22. NML Costs
23a. AV Hardware -Accelerated Working
Mr Fitch's figure is £3,326.25 and Mr Matthews' £2,500 with Mr Matthews arguing that there was no mitigation or credit given. The item relates to damage caused to TV monitors; whilst there is no challenge to the costs of and occasioned by the need to replace them it is asserted that the sum paid was too high and ought to have been strongly challenged in circumstances where there was a note on file from Patton which suggests that the costs "sound[ed] a bit on the high side". The onus of proof on the mitigation point is on AEW and it has not been discharged; Mr Matthews presented no evidence that any element of the broken down cost was excessive. The full amount should be allowed.
26a. Mounts - Accelerated working
28a. Graphics -Accelerated working
33. Patton Site Management
34. Museum Costs - Exhibition Works
35. Mr Batchelor's Time
36. Costs Management – exhibition works
I summarise my findings on the disputed pre-opening costs:
Item No. and description | Amount allowed |
6. Reinstall Base Build Lighting in Creative City | £31,074.64 |
8.Reinstall Base Build Lighting in Peoples City | £35,408.14 |
11. Replacement of emergency light fittings (inspection of ceilings) | £1,310 |
14. AV Hardware initial impact | £6,192.83 |
16. Peoples City - reinstallation of lighting | £1,268.53 |
19. Patton Heritage cleaning team | Nil |
21. Cost management – ceilings works | £3,210 |
22. Museum overtime costs - Ceiling works | £10,635.60 |
23a. AV Hardware -Accelerated Working | £48,675.25 |
23b Repairs to Equipment | £3,326.25 |
26a. Mounts - Accelerated working | £27,505.88 |
28a. Graphics -Accelerated working | £9,020 |
33. Patton Site Management | £34,774.47 |
34. Museum overtime costs - Exhibition Works | £2,800 |
35. Mr Batchelor's Time | £17,150 |
36. Costs Management –exhibition works | £1,620 |
TOTAL | £233,971.59 |
Post-opening (future) costs
SAS Ceiling remedial works
1.3 Scaffolding platform
2.1 Removal of house lighting in tray and other items
2.5 Removal of high level cylinders in Wonderous Place (1st part)
2.6 (Part) Lutyens detail
2.7 Re-lamping of AV equipment (2nd part)
2.9 Installation of light fittings and track (1st part)
2.9 Re-lamping (2nd part)
2.10 Re-install high level cylinders
2.11 Miscellaneous decorating works
2.12 Removal of protection
2.15 Vent works
4.1 Professionals
Summary
Item description | Amount allowed |
1.3 Scaffolding platform | £40,680 |
2.1 Removal of house lighting in tray | £10,000 |
2.3 Remove Fire Alarm/Public Address/CCTV | £5,000 |
2.5 Removal of high level cylinders in Wonderous Place (1st part) | £11,300 |
2.5 Electrical disconnections (2nd part) | £4,500 |
2.6 Installation of new ceiling (part) | £61,020 |
2.6 Lutyens detail | Nil |
2.7 Re-lamping of AV equipment (2nd part) | £10,000 |
2.8 Install Fire Alarm/Public Address/CCTV | £5,000 |
2.9 Installation of light fittings and track (1st part) | £25,500 |
2.9 Re-lamping (2nd part) | £5,000 |
2.10 Re-install high level cylinders | £11,300 |
2.11 Miscellaneous decorating works | £16,000 |
2.12 Removal of protection | £16,000 |
2.15 Vent works | £8,000 |
Sub-total | £229,300 |
Add contingency at 10% (agreed by experts) | £22,930 |
Sub-total | £252,230 |
Add professional fees at 15% (agreed by experts) | £37,834.50 |
Total | £290,064.50 |
Armstrong Ceilings remedial works
(a) Mr Fitch produced a calculation based on accessing two tiles at a time which produced a figure (excluding the £50,000 allowance) of £184,464.40 and another calculation based on accessing one tile which produced a figure of £133,206.75.
(b) Mr Matthews submitted a letter dated 2 May 2013 to his client's solicitors which had some photographs and measurements and a financial breakdown supporting a figure of £63,761.57.
Mr Fitch and Mr Brannigan QC for the museum have confirmed that the allowance net of the £50,000 which is sought is now £133,206.75. The Court does have some problem with the evidence from both sides because, following the completion of the evidence, it was understood and hoped that the two experts would agree more than they had done, for instance in relation to measurements which should not have been something which they should have disagreed about. Unfortunately, as on a number of other occasions relating to the trial, little more was agreed. Some of Mr Matthews' evidence was not reliable, an example being his reliance on a £13.45 per m³ rate for tiles given to him over the telephone by someone called "Trevor" from a supplier in London as opposed to Liverpool. Another problem is that Mr Fitch was not cross-examined to any material degree as to his calculation; I do not draw any inference from that because by agreement there had been an initial "hot-tubbing" exercise involving the quantum experts which did not get onto the Armstrong ceilings remedial works in any detail which was then followed by cross-examination limited by time. Mr Matthews was then asked a number of questions in chief by Mr Reed QC on the topic. I have considered all the evidence however including the transcripts of the evidence.
(a) Mr Matthews has on numerous occasions tended to underestimate the likely price for remedial works (see above and in the first judgment).
(b) On analysis, Mr Matthews's rate is predicated on over 2000 m² of tiles being replaced at a rate of about 8 minutes or 13 minutes per metre of tiles, depending on whether there is an area of easier as opposed to more restricted access. This is simply unrealistic. First the mobile platform has to be manoeuvred into position, then existing tiles have to be removed together with possibly several others to ensure that access can be provided, and the missing components (for instance spacer bars and clips) fitted, the tiles need to be measured and cut, the new cut tiles need to be located (and the others removed for access also replaced) and the mobile platform moved away. This would produce, depending on the access and how easy or difficult a given area is to work in, a time required of very substantially more. I prefer Mr Fitch's analysis as being more realistic.
(c) Mr Matthews' measurements (2005m) differ from Mr Fitch's (2246m) in total by about 10%. Mr Fitch has taken all his measurements from figures agreed between the quantity surveyor experts in the Joint Statement dated 22 March 2013 except that he has identified for the lighting tracks on the ground, first and second floor that the measurements need to be enhanced because the lighting track is on two sides. I prefer Mr Fitch's measurements which equate to what the experts originally agreed and because Mr Matthews's measured areas (where they differ) are not obviously supported.
(d) Another difference between the experts relates either to when in the day the work is going to be done or the respective difficulty involved in different areas of the work. Mr Fitch identifies all but two areas at an "enhanced" rate with the other two areas (on the ground floor) being at a "base rate". Mr Matthews has a number of different rates for "basic areas", "areas not clear of exhibitions", "night rate", "day rate and "night rate at height". In my view Mr Matthews is making this aspect much too complicated and without much justification. I prefer Mr Fitch's approach: all his "enhanced" areas are areas which have particular difficulties with large amounts of display cabinets and other problems. I accept the Museum's and his evidence that much of the work will need to be done at overtime rates or alternatively the rates need to take into account the fact that the work in many places will be piecemeal.
(e) When it comes to the rates, Mr Matthews made one reasonable point which was that the 50% addition to the cost per hour for out of hours and piecemeal labour working, suggested by Mr Fitch, is probably excessive. This is because, although the workmen will be entitled to time and a half, there are certain fixed elements to his or her salary which will not be enhanced by the uplift. Mr Matthews suggested a percentage of 35% which I consider is a fair addition.
(f) By reference to "Trevor" and to the Spons pricing book, Mr Matthews suggested that the rate used by Mr Fitch (£30 per m²) was excessive. However there was not an exact comparison. Spons suggested a figure of some £24 per m² for the supply and fitting of new tiles including cutting but the £30 rate included a 50% mark-up for out of hours and piecemeal labour working.
(g) Finally, there was an argument from Mr Matthews that a conversion factor of 0.6 to convert from 1m² to 1 tile was wrong in Mr Fitch's calculation. It is unclear from Mr Reed's and Ms Conroy's closing submissions whether this point is maintained but I accept Mr Fitch's approach.
Item | Amount |
Basic cost of works | £99,069.25 |
Add preliminaries at 15% | £14,860.38 |
Sub-total | £113,929.63 |
Add 5% for contingency | £5,696.48 |
Sub-total | £119,626.11 |
Add 5% for professional fees | £5,981.30 |
Total | £125,607.41 |
Museum Costs associated with Ceiling remedial works
Loss of profit
Ceilings in Lobbies
The Museum in Paragraph 51 of the Amended Particulars of Claim claims for the return of fees paid to AEW for work said to have been done in attempting to rectify or as a consequence of AEW's breaches of contract or negligence. I am not satisfied on the evidence that this claim has been made out at all. It is based on 8 Change Orders or Variations only some of which seem to relate to the areas of work with which the breaches/negligence are concerned. Ms Granville did some analysis on this in her evidence and she was not particularly challenged on this evidence, albeit it is more comment than evidence. I will provide brief comments against these items:
(a) The 3 Change Orders which she addresses (Nos. 258 (10 April 2008), 281 (2 June 2008), 410 (8 September 2008) all arose a year or more before the problems relating to these steps and stairs and there is no evidence from the experts in relation to the work undertaken at that stage that AEW was or had been negligent at all or to the extent that it was necessary to put right deficiencies then induced by their negligence.
(b) Variation 4 relates to screeds and internal partition walls apparently not being correct but there is no evidence that AEW had been negligent in relation to these matters. It does also relate to "ceiling finishes" not being "correct" but there is no evidence as to why they were not at that stage correct.
(c) Variations 5, 8, 9 and 10 are variations on the same theme referring to ramps, external stairs paving, escape stairs, screeds, ceilings, partition construction, mezzanine decks for plant, paving, steps, installation, and drainage not being "correct" but there is no evidence why these were putting right anything which at the time could be said to be the negligence of AEW.
The Injury
Summary
Item and Paragraph No above | Amount/Relief |
Paragraph 2 - undisputed Ceilings Post and Pre-opening | £307,559.27 |
Paragraph 30 – disputed Pre-opening costs | £233,971.59 |
Paragraph 46 - SAS Ceiling remedial works | £290,064.50 |
Paragraph 50 - Armstrong Ceilings remedial works | £125,607.41 |
Paragraph 55 - Museum costs associated with ceiling remedial works | £214,206.47 |
Paragraph 57 - Museum loss of profit | £60,000 |
Paragraph 58 - Ceilings in Lobbies | £5,000 |
Paragraph 59 - The Injury | Indemnity |
Total | £1,236,419.24 |