Tuesday 10 February 2009

McNamara seeks payment of €1.02m

A COMPANY owned by builder Michael McNamara has brought court proceedings against a developer seeking €1.02 million fees allegedly outstanding under a 2006 contract for a €101 million shopping centre and mixed use development in Kilkenny.

The McNamara company claims it is now experiencing cash flow problems as a direct consequence of the defendant’s failure to pay.

The action by Michael McNamara and Company, Upper Ormond Quay, Dublin, is brought against Cedartree Construction Ltd, Merrion Road, Ballsbridge, and was admitted to the Commercial Court yesterday by Mr Justice Peter Kelly.

The proceedings relate to a contract of April 2006 under which the McNamara company agreed to design and build a shopping centre and extensive mixed use development, known as McDonagh Junction, at Dublin Road and Hebron Road in Kilkenny.

It is claimed work on the development is substantially complete. It is claimed the defendant’s quantity surveyor had earlier certified payments of €101,397,395 to the McNamara company and these had been paid.

It is claimed some €1.024 million in additional certified fees remains outstanding and the failure to pay this amount has caused several financial loss and damage to the plaintiff company. A letter of November 16th last requesting payment and indicating an intention to take legal proceedings if payment was not forthcoming was not responded to, the court heard.

It is also claimed the McNamara company’s profit margin on the entire construction project has been undermined by the non-payment of the sum in question.

The company was now experiencing cash flow problems as a direct consequence, the court was told.

McNamara was under particular pressure to pay suppliers and subcontractors for goods and services provided in connection with the project, it said.

Irish Times


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