Southend-on-Sea City Council has moved to settle a late payment claim with a contractor after the firm launched an adjudication process against it.
The council said it would pay almost £590,000 to Auburn Group over work done at the city’s Cliffs Pavilion performing arts centre, which was hit by issues including asbestos.
Auburn Group brought the adjudication over the council’s “late and/or non-payment” for work completed at the centre, according to the council.
Paying out the sum was a “matter of urgency” to “resolve the adjudication” with Auburn Group, according to a report by Mark Murphy, the council’s head of property and estate management.
“Continued non-payment would lead to the adjudication recommencing, which would incur additional legal costs and the council would still be required to pay the agreed certified sums,” he added.
The sum consists of two separate amounts of £352,100 and £229,000 plus interest.
The two payments were due on 22 August and 23 September, respectively, and drew interest of £6,100 and £1,800. Auburn Group then began an adjudication process against the council, which was placed on hold to enable the council to consider the case.
Auburn Group was appointed by the council in June 2024 to refurbish and extend the front-of-house facilities at the centre for £4.8m.
In the documents published on 12 October, the council said it discovered additional areas of asbestos at the site and found issues with the 1960s load-bearing slab.
As a result, it issued a four-week extension due to the asbestos problem, and a 20-week extension due to the load-bearing slab issue.
The council also knew there would be “potential issues” arising from foundations built in the 1930s and 1960s, it added.
“The separation and subsequent reconnection to existing systems and services within the theatre, alongside maintaining full operational use of the auditorium, created a significant level of risk for the project” as well, the council said.
The council also allocated a further £150,000 to fund the replacement and upgrade of the public address and voice alarm system.
So far, the council has paid out £5.1m to Auburn Group for the work. It said there were “still works to be completed and certified”, adding that there were “three main areas of potential contractual dispute” at the site.
Documents detailing the potential areas of contractual dispute were not made available to the public or the press.
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