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Costain to sue Wescol over 'invalid' adjudication

COSTAIN is suing collapsed steel firm Wescol for nearly £1 million after a payment bust-up on a leisure development in Kingston-upon-Thames, Surrey.

The legal dispute centres on claims by Costain that an adjudication launched by Wescol Steel at the end of last year was invalid. Costain is claiming for legal costs incurred during the adjudication.

A spokesman for Costain said: 'This is obviously a matter for the legal process and therefore it would be inappropriate to comment at this time.'

Wescol, placed into administrative receivership last September, was appointed by Costain to carry out steel erection on the £18 million Rotunda project for client Clearwater Estates.

The firm entered into adjudication last December after a dispute in relation to entitlement to extension of time.

A spokeswoman for administrator Ernst & Young said it was acting for Wescol in relation to the legal action but could not comment further.