HC Deb 20 December 1989 vol 164 cc294-5W
Mr. Lambie

To ask the Secretary of State for Scotland if settlement has been made of the contractual disputes arising from the construction of Crosshouse hospital, Kilmarnock.

Mr. Michael Forsyth

Following negotiations between representatives of Ayrshire and Arran health board and the main contractors, the architects and the consulting mechanical and electrical engineers, relating to claims arising from delays in the completion of Crosshouse hospital, the following settlements have been agreed:—The health board has accepted an offer of payment by Boissevain and Osmond, architects, of £470,000 together with the abandonment of the architects' claim for outstanding professional fees; The heald board has accepted an offer of payment by Ruck, Willcox & Partners, consulting mechanical and engineers, of £250,000. Melville, Dundas & Whitson, the main contractors, have accepted an offer of payment by the health board of £1.25 million.

In each case, the settlement of the claim is on the basis that each side should meet its own costs.

I am satisfied that this settlement represents a reasonable and acceptable conclusion to this dispute, taking into account the substantial costs that would have been required to pursue these actions to a conclusion.

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