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After the municipality of Örebro did not pay the asphalt work done by NCC in 2017 and early 2018, the construction giant is now reacting by suing the municipality.
The municipality and NCC have collaborated with several asphalt plants for 10 years, but the framework agreement between the two parties has now been lifted. In 2017, the municipality of Örebro provided depository services to the NCC for an amount of SEK 60 million without paying. The municipality also withheld the payment for the work done in early 2018.
– Non-payment constitutes a material breach of the contract. It is extremely rare for us to disagree with our clients about what is included in the mission. We have tried to engage in a constructive dialogue to reach a consensus, but unfortunately we are very far apart. Now, a court will re-examine the case, said Johan Jansson, division chief of Asfalt, NCC Industry Sweden.
"NCC has failed asphalt"
In the municipality of Örebro, the dispute was interpreted differently and NCC failed to comply with the agreement.
"NCC partially deformed the asphalt based on what is stated in our agreement and used a type of asphalt that, in different respects, is worse than the one we ordered and that our agreement indicates that they should As this means that CNC has billed and thus paid for something that it has not executed and delivered, we have kept the payments and asked NCC to take action to address the serious deficiencies, "said Tommy Karlqvist, project manager at Park and Street. in the municipality of Örebro.
The municipality also mentions samples taken from several completed asphalting works, which were then analyzed by an external laboratory. According to Tommy Karlqvist, the samples show serious flaws in the work performance and the quality of the asphalt laid.
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