The case concerned work carried out by Northstone (NI) Limited, trading as Farrans Construction, on the West Cumbria Supply Project – the scheme built to bring water from Thirlmere Reservoir to homes and businesses in West Cumbria.
United Utilities has previously described the scheme as a £300m pipeline and treatment works project, built to provide around 80,000 households and businesses with a more sustainable water source from Thirlmere.
According to the judgment, United Utilities and joint venture parties including Farrans entered into a contract in 2017 to build 32 kilometres of cross-country raw water aqueduct and 24 kilometres of network water mains pipelines.
The original contract was worth £85m, but later agreements increased the price to £131.6m.
The dispute centred on a payment notice issued in October 2024, after United Utilities assessed that Farrans owed it £3,269,328.05.
Farrans challenged the validity of the payment notice, but Her Honour Judge Kelly, sitting as a High Court judge in the Technology and Construction Court, granted summary judgment in favour of United Utilities.
She ordered Farrans to pay £3,269,328.05 plus VAT, adjudicator’s fees of £62,254.69 plus VAT and interest.
The judgment was handed down on May 6.