News / DITT wins £175,000 over Mareel contract
SHETLAND construction firm DITT has won a further substantial payment for the contract to build the Lerwick cinema and music venue Mareel following a hearing in the Court of Session on Wednesday.
A payment of more than £175,000 plus interest and legal costs will have to be handed over by Shetland Arts for four months work they claimed they were still owed.
DITT say they are taking further action to claim yet more money, while Shetland Arts are preparing a counterclaim after the building went overbudget by £1.5 million.
It is the second payment the building firm has won through the Court of Session over the contract to build the £13 million waterfront complex that was completed 18 months behind schedule.
Two months ago Shetland Arts were ordered to pay £200,000, which was outstanding to the company.
Earlier this month the council voted through a £600,000 “bridging facility” towards the completion of Mareel, to match extra funding of £562,000 provided by government agencies outside the islands.
The dispute between DITT and Shetland Arts has become increasingly bitter with the arts agency recently accusing the builders of making “false and damaging statements”.
Shetland Arts director Gwilym Gibbons said the company had erected a smokescreen to hide their own failings by blaming the client for the delays, when responsibility had been laid at the builders’ door by the independent contract administrator.
DITT director Peter Tait refuted the allegations at the time, and on Thursday he welcomed the court’s decision to pay over the latest sum.
“We are very pleased, it wasn’t unexpected but we still had to go through the process.
“We regret what we had to do that but our hand was forced by the actions of the Shetland Arts Development Agency.
“We really feel it’s a vindication of our actions on this contract so far, regrettably we do have further actions pending.
“We hope they won’t be necessary but if so we will pursue them.”
Shetland Arts chairman Jim Johnston said the board of trustees had met on Wednesday night to discuss the case and had no comment to make at this stage.
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