Problem National Grid contract costs Costain £43m

Costain has shelled out more than £43m to National Grid following a series of adjudications rulings in the wake of its dispute with the utility giant on a gas compressor scheme in Cambridgeshire.

The firm left the Peterborough and Huntingdon scheme in summer 2020 and under a range of scenarios had either been expected to collect £50m or pay out more than £57m.

Last December, the contractor said a series of adjudication decisions meant it would now have to pay out to National Grid.

Under the terms of the process, Costain was facing having to hand over £53.5m to National Grid. But this morning, it said the figure would be £43.4m which it has now paid.

It added: “The settlement agreement brings an end to the dispute after the contract was mutually terminated in June 2020 and prevents any further claims under the contract.”

Costain is due to announce its 2021 results on 9 March.