Kier agrees to pay Somerset waste bosses undisclosed sum over contract dispute

By Susie Watkins

6th Jan 2022 | Local News

Swp Rubbish Lorry. CREDIT: Somerset Waste Partnership. Free for use for all BBC wire partners
Swp Rubbish Lorry. CREDIT: Somerset Waste Partnership. Free for use for all BBC wire partners

A major waste management company has agreed to pay Somerset waste bosses an undisclosed sum following the conclusion of a legal dispute.

The Somerset Waste Partnership (SWP) had contracted Kier to handle its kerbside refuse and recycling collections before the new Recycle More programme began being introduced.

The two parties entered into a dispute over the conclusion of the contract in March 2020, with Kier ultimately agreeing to pay the SWP as a settlement.

The SWP has refused to disclose either the settlement amount or details about the nature of the dispute, citing commercial confidentiality.

Brief details of the decision were published on Somerset County Council's website shortly before Christmas.

SWP managing director Mickey Green said: "We and Kier have been disputing a number of costs in relation to the collection contract, which was terminated on March 27, 2020.

"A commercial settlement has been reached between SWP and Kier, which will result in full and final settlement of the issues. The outcome of the settlement is commercially confidential.

"The settlement agreement precludes further action over the matter and protects the council against risks.

"As a result, Kier has agreed to pay us a sum in settlement of the matter."

The SWP has since clarified that the dispute was not in relation to either the early stages of the ongoing coronavirus pandemic or the roll-out of Recycle More, which is progressing under new collections contractor Suez.

Mr Green said the settlement represented "a good commercial outcome" for the SWP and by extension taxpayers.

He said: "Not agreeing a commercial settlement (and entering the formal dispute process involving expensive, risky and lengthy mediation and arbitration) was considered and rejected, as it was not considered likely to produce a better outcome."

He added that members of the Somerset Waste Board (which oversees the SWP's activity, comprising representatives from all five Somerset councils) had been regularly updated throughout the dispute.

     

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