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Jarvis sues Alstom over rail scheme

JARVIS is suing Alstom for over £1 million, claiming the signalling firm has withheld payment following a row between the pair on a light rail scheme in the north-east.

The writ follows a dispute which erupted last autumn after Alstom claimed Jarvis owed it over £800,000. It claimed the contractor went back on a pain/gain share clause in its contract to extend the Tyne and Wear Metro from Pelaw to south Hylton via Sunderland.

Now Jarvis has hit back, saying Alstom owes it £1.3 million after an adjudicator decided Alstom was 'not entitled to withhold any payments from the claimant' In the latest High Court writ Jarvis said Alstom failed to certify and pay the sum claimed. Jarvis, which didn't sign the contract, declined to comment.