A property development company has claimed in the Commercial Court that significantly understrength concrete was supplied for use in basement and ground floors of what it says will be an iconic office building near St Stephen’s Green in Dublin.
KC Capital Property Group Ltd says the defective concrete has been removed and the eventual cost of remediation will be at least €9 million.
The firm is behind what is to be known as the Greenside Building on Cuffe Street which, when complete, is expected to be worth €51 million.
It has sued Keegan Quarries Ltd, Rathmolyon, Co Meath, which supplied ready-mix concrete used in the building’s basement walls, ground-floor columns and the ground-floor slab.
Keegans denies any wrongdoing and claims that if there was any defective concrete, which is denied, there was no need to remove all the concrete, thereby increasing exponentially and unnecessarily the cost of remedial works.
Keegan’s director, John Keegan, in opposing entry of the case to the High Court’s fast-track commercial list, said €150,000 worth of concrete was supplied. He fails to understand how his firm could be liable for damages of more than €9 million, especially having regard to the obligations of others involved in the development.
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KC Capital managing director David Kennan said that when the lorries delivered the concrete, samples were taken by both the supplier and the contractor and later tested. It emerged later these samples were found to be significantly understrength, he said.
The contractor, Grant Fit Out Ltd (formerly CGDM Construction Ireland Ltd) engaged with Keegan about this and the firm, Mr Kennan said, claimed poor testing procedures gave these results.
Further tests were carried out, including by independent experts, confirming the understrength results, he said.
Last October, KC Capital terminated the contract with Grant Fit Out and, last April, Townlink Construction was appointed to replace them. Demolition of the in situ concrete commenced shortly afterwards.
Mr Kennan said further tests on the concrete removed from the building showed it was significantly below minimum specification levels.
In particular, there was a complete absence of a sustainable cement substitute known as granulated blast furnace slag. There was also locally strong mottling in the sampled material, which indicated there was insufficient mixing of water and cement which is part of the quality-control process in the concrete batching plant, he said.
Mr Kennan said that when Keegan was written to by KC Capital’s solicitors, the firm responded that if there was any defect in the concrete, which was not admitted, it could only have arisen as a result of interference by the contractor following delivery of the product by the addition of water or from lack of compaction placing the concrete.
That assertion fails to take account of the fact that the samples taken from the delivery lorries were taken before any alleged interference, Mr Kennan said.
Mr Keegan, in his affidavit claiming a delay in bringing the proceedings, said that despite the fact that the issue was raised with the contractor, KC Capital appeared to allow more concrete to be poured in the ground floor. These facts were known some 11 months ago, he said.
Mr Keegan said he also became aware that the defective concrete issue was one of a number of issues that arose between KC Capital and Grant Fit Out. There were also complaints of poor workmanship and lack of competence. This could have led to the decision to demolish and remove the concrete, he said.
On Monday, Mr Justice Denis McDonald agreed to admit the case into the Commercial Court list on the application of Declan McGrath SC, for KC Capital. Martin Hayden SC, for Keegans, opposed the application, saying the plaintiff was guilty of delay.
The judge said that while Keegan felt aggrieved at the case being brought into the commercial list, he could see that this was explained by the necessity for KC Capital to carry out investigations to see who is liable.
He approved a timetable for the progress of the case and said it could come back in November.
