This article is from page 12 of the 2006-09-19 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 12 JPG
CLARE businessman, Paddy Whelan and the Whelan Group are set for an estimated windfall of up to €16 million in a major compensation deal that threatens the viability of Limerick City Council.
This follows an arbitrator ruling that Uniform Construction Ltd was wrongly fired from the city’s main drainage scheme in 2001. Paddy Whelan assumed control of 50 per cent of Uniform Construction following the council’s decision.
Now, the independent arbitrator has told the council to pay €32 million to Uniform Construction. The company has been precluded from tendering for work in the State since being removed from the €140m drainage scheme.
Uniform secured a contract for the work in 2000, but was removed from the works in November 2001, when the council claimed that the project was neither on time nor on budget.
Welcoming the arbitrator’s ruling, Uniform said that its professional competency had been “completely vindicated”. It said that it had encountered site difficulties when car-
rying out the work that had not origi nally been anticipated in the original tender.
Limerick City Council has expressed disappointment at the award, but claimed that its decision to pursue arbitration was vindicated given the claim lodged by the company was €85million.
Uniform maintained its tender was based on incomplete engineering information given by the council on rock types in the river bed. However, the company said it hit rock under the Shannon which it had not been advised of by the council reports.