AMEC Group Ltd v Secretary of State for Defence

Pursuant to a contract dating from March 2000, the respondent engaged the claimant to carry out the design and construction of a facility to support nuclear submarines at HMNB Clyde ("the contract"). The contract is a Maximum Price Target Cost ("MPTC") contract, and the original Maximum Price Target Cost was £89 million odd. There have been extensive cost and time overruns. The current agreed Maximum Price is £142.1 million, but the claimant considers it likely that the ultimate cost of the contract may be as much as £235.7 million, some £93.6 million in excess of the current agreed Maximum Price.