Defending a £556k Drainage Claim in a Major Healthcare Energy Centre

The Challenge

During piling works on a major healthcare energy centre project, the Groundworks Subcontractor struck a live drain, causing concrete ingress and site disruption. Emergency over-pumping and robotic cutting were required to restore the system.

Although the subcontractor initially accepted responsibility, they later claimed £468,040 under Compensation Event 003 – Relocation of Drainage, alleging design issues. The claim grew to £556,078.80 and proceeded to adjudication.

Our client maintained that the incident stemmed from the subcontractor’s own failings and that notification was out of time under the NEC4 contract. Quantik was appointed to provide commercial and contractual support throughout the process.

Our Approach

Quantik’s review confirmed CE-003 predated the drain strike, rendering it invalid. Clause mapping under NEC4 Clauses 44.1, 61.3 and 63.9 demonstrated late notification, removing entitlement to time or cost.

We prepared a comprehensive evidence pack including a chronological event summary, contemporaneous records, witness statements, and a forensic quantum assessment. Working with the client’s solicitors, Quantik structured the formal response and coordinated technical input from site teams.

During adjudication, Quantik attended the full-day hearing, presenting the valuation analysis and responding to detailed questions on methodology and evidence. This involved direct exchanges with the opposing team and the adjudicator, where we:

• Explained our interpretation of NEC4 principles
• Justified cost disallowances related to defect rectification
• Defend the client's position under cross-contamination-style questioning

Although robotic cutting was technically justified, our assessment showed the costs were overstated and the works constituted defect correction, not a valid compensation event.

The Outcome

On 18 September 2025, the adjudicator dismissed the subcontractor’s claim in full, confirming CE-003 was invalid and the client bore no liability for additional time or cost.

The decision agreed that notification was late and the event arose from the subcontractor’s own design and execution failures. Our client avoided nearly £550,000 in exposure, with only £7,844 awarded for management time under minor compensation events.

The adjudicator described our case as “clear, structured and persuasive”, reinforcing NEC4 time-bar provisions and showcasing Quantik’s ability to deliver robust, evidence-based adjudication support.

This engagement demonstrated Quantik’s expertise in commercial analysis, contractual precision and clear communication under pressure.