NHSGGC Loses £33m QEUH Claim vs Multiplex

Key Points

• NHS Greater Glasgow and Clyde (NHSGGC) lost its £33 million compensation claim against Multiplex Construction Europe Ltd over fire cladding defects at Queen Elizabeth University Hospital (QEUH) in Glasgow.
• The hospital, opened in 2015, featured aluminium composite material (ACM) panels with polyethylene (PE) cores in the atrium cladding, failing to meet the required Euroclass B fire resistance standard as per the contract.
• A judge initially accepted NHSGGC’s factual case but ruled the claim time-barred under prescription rules; this decision was upheld on appeal at the Court of Session’s Inner House.
• The cladding issue came to light post-Grenfell Tower fire in 2017, prompting reviews that identified ACM PE materials; replacement work began in November 2022, set to conclude in 2027.
• Broader disputes include earlier claims by NHSGGC against Multiplex for up to £73 million over operational defects, plus additional £18 million claims related to construction issues linked to a public inquiry into infections.
• Multiplex counterclaimed for repayment of sums paid via adjudications, denying breach of contract on the atrium cladding specification.
• The Outer House judge (Lord Braid) assoilzied Multiplex in 2025, finding no inducement of error or reasonable diligence to suspend prescription; Inner House dismissed the appeal, deeming findings not “plainly wrong”.

Glasgow (Glasgow Express) April 4, 2026 – NHS Greater Glasgow and Clyde has suffered a major legal setback in its bid to recover £33 million from Multiplex Construction Europe Ltd, the builders of the scandal-plagued Queen Elizabeth University Hospital, after the Court of Session upheld a ruling that the claim was time-barred. The decision ends years of litigation over defective fire cladding in the hospital’s atrium, which failed to meet contractual fire safety standards. This outcome leaves the health board footing the bill for remediation works amid ongoing concerns about the £842 million facility’s construction quality.

What Led to the Cladding Scandal at QEUH?

The Queen Elizabeth University Hospital, part of a major campus including the Royal Hospital for Children, opened in 2015 after construction by Multiplex under a design-and-build contract valued at £842 million.

As detailed in court documents from the Court of Session, stage 3 construction completed on 26 January 2015, with the contract stipulating that atrium cladding must achieve Euroclass B fire resistance. However, the installed aluminium composite material (ACM) panels with polyethylene (PE) cores did not comply.

Post-Grenfell Tower fire on 14 June 2017, both parties reviewed cladding: Multiplex across its projects and NHSGGC under Scottish Government orders for public buildings. These identified exterior ACM PE cladding for replacement, but atrium cladding—made of similar materials—was initially overlooked by both. As reported in Scottish Courts records, this oversight delayed discovery until later investigations.

NHSGGC initiated a £33 million removal and replacement programme in November 2022, expected to finish in 2027, with costs forming part of the legal claim. Patient safety remains paramount, with fire risk assessments in place across the campus.

Why Did NHSGGC Sue Multiplex for Compensation?

NHS Greater Glasgow and Clyde sought £33 million specifically for atrium cladding defects, alleging breach of contract. Broader claims escalated to £73 million in 2021 for “operational effectiveness” issues affecting healthcare delivery, as stated in a Construction Management report:

“NHS Greater Glasgow and Clyde (NHSGGC) is suing Multiplex for £73m after problems on the £842m Queen Elizabeth University Hospital.”

An additional £18 million claim followed in 2021 over design and construction defects tied to a public inquiry into infection deaths at the campus, suing Multiplex, guarantor BPY Holdings LP, Capita Property and Infrastructure Ltd, and Currie & Brown UK. Multiplex responded:

“Multiplex is extremely disappointed that some five years after the completion… we are currently reviewing the terms of the claim.”

In the atrium case, NHSGGC claimed £16.325 million plus interest and expenses; Multiplex denied liability, counterclaiming £16.9 million for adjudication payments it deemed erroneous.

What Happened in the Initial Court Ruling?

Last year, Lord Braid in the Outer House accepted NHSGGC’s strong factual case on defects but ruled the claim prescribed under the Prescription and Limitation (Scotland) Act 1973. He found NHSGGC knew or ought to have known of the issues earlier, rejecting section 11(3) suspension for lack of reasonable diligence or inducement of error. As per Scottish Legal News via Scottish Construction Now, Lord Braid “granted decree of absolvitor” against Multiplex and others.

The judge noted no evidence from NHSGGC witnesses on actual state of mind or inducement by Multiplex’s silence post-2018 awareness.

How Did the Appeal Unfold at Court of Session?

NHSGGC appealed to the Inner House, arguing errors in assessing inducement of error under section 6(4) and reasonable diligence. The 31 March 2026 judgment (2026 CSIH 16) by Lords Clark, Boyd, and other justices refused the reclaiming motion, stating appellate courts interfere only if first-instance findings are “plainly wrong.”

GGHB contended Multiplex’s post-2018 silence induced belief in compliance, but the court upheld the commercial judge’s detailed reasoning, lacking evidence of positive inducement or board mindset. On diligence, GGHB failed to prove earlier discovery impossible. The Inner House assoilzied Multiplex, WSP, and Nightingale, putting further procedure to order.

As reported by The Times,

“NHS Greater Glasgow and Clyde (NHSGGC) appealed against that judgment, but it has now been upheld at the Inner House of the Court of Session.”

What Are the Broader Issues with QEUH Construction?

The hospital has faced scandals beyond cladding, including infections prompting a public inquiry and design flaws. A 2020 independent review found “a series of problems” in design and construction, though not conclusively linking to avoidable deaths. NHSGGC sued in 2020 for technical issues, paused for adjudication.

Dr Jennifer Armstrong, former NHSGGC deputy, told the Scottish Hospitals Inquiry the hospital was “not built right,” with the board not receiving expected infrastructure. Architect claims of “unsafe” external cladding persist, with NHSGGC responding:

“Following an evaluation… we are implementing a program for removal and replacement… Patient safety is our top priority.”

Earlier 2017 cases like Clark v Greater Glasgow Health Board highlight ongoing disputes.

Who Are the Key Players Involved?

• NHS Greater Glasgow and Clyde (NHSGGC/GGHB): Health board pursuing claims, now bearing remediation costs.
• Multiplex Construction Europe Ltd: Main contractor, denying breaches, counterclaiming.
• Judges: Lord Braid (Outer House, 2025); Inner House panel including Lord Clark (2026 judgment).
• Others: BPY Holdings (guarantor), Capita, Currie & Brown (sued in broader claims); WSP, Nightingale (atrium assoilzied).

What Does This Mean for Future Claims?

The ruling bars the £33 million atrium claim but leaves other suspended actions (e.g., £72.8 million) pending. Scottish Government supports cladding costs; NHSGGC cooperates with courts. No comment from parties post-judgment, but Multiplex treated matters “with utmost seriousness.”

Public scrutiny continues via inquiries, with STO raising concerns over delayed removals six years post-Grenfell.