Energy Works (Hull)
Energy Works (Hull) Ltd v
MW High Tech Projects UK Ltd and Outotec (USA) Inc
[2022] EWHC 3275 (TCC)
Mr Samuel Williams of Sine Environmental Limited was appointed as noise expert on behalf of equipment supplier Outotec (USA) Inc, the Part 20 defendant in a complex dispute regarding the Energy Works (Hull) Limited Energy from Waste (EfW) gasification plant in Hull.
The dispute was heard by the Honourable Mr Justice Pepperall in the High Court of Justice Business and Property Courts of England and Wales Technology & Construction Court (QBD). Particulars of the dispute included alleged defects in relation to noise emissions from the Energy Works Hull power plant.
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The judgement awarded damages to Energy Works Hull in respect of on-site and off-site noise. M+W’s contribution claims against Outotec were dismissed for want of notification, but that had that not been the case, M+W was only successful in demonstrating that Outotec failed to properly mitigate noise from two items of equipment.
Read on below for further details.
Expert Report Cover Page
Mr Williams in crane basket awaiting lift to top of ID Fan Exhaust Stack
Expert Report Cover Page
Process
Joint discussions were held with the two other noise experts representing other parties, resulting in a Joint Expert Report. This report identified the issues that needed to be considered by the noise experts, explored agreement between the noise experts on any issues and narrowed down the issues which are not agreed upon by the noise experts.
Among the issues that the experts agreed upon was the need to assess noise from the plant in accordance with BS4142 (various editions), and that assessments should also consider the advice given in BS 8233:2014, the Environment Agency’s Horizontal Guidance for Noise Part 2 – Noise Assessment and Control Version 3 (2004), and the European Environment Agency’s Good practice guide on noise exposure and potential health effects (2010). The experts also agreed that, to determine compliance with the contract noise limits for equipment that was already installed and operating in a complex environment, sound intensity measurements in accordance with the ISO 3744 family of standards were more appropriate than sound pressure level measurements.
The joint experts undertook offsite noise measurements to determine whether normal operation of the plant was in accordance with the Environmental Permit and whether it was causing any adverse impacts at nearby dwellings. Sine Environmental, witnessed and assisted by the other experts, then conducted over 100 sound intensity measurements of equipment operating within the EfW plant to establish whether they complied with the contract noise limits. The subsequent expert reports gave considerable consideration to the contractual obligations in respect of noise from the viewpoints of the Claimant, the main contractor and Outotec as the gasifier plant equipment supplier, and the extent to which they had been satisfied.
Judgement​
After consideration of the expert evidence presented, the judgement awarded damages to Energy Works Hull in respect of on-site and off-site noise. The judgement determined that M+W’s net liability for noise attenuation measures was £ 1,050,787.60 (approximately 53% of the amount that the Claimant sought). The judgement explained that M+W’s contribution claims against Outotec were dismissed for want of notification, but that had this not been the case, M+W was only successful in demonstrating that Outotec failed to properly mitigate noise from two items of equipment; M+W had not established any wider case in respect of noise from the other items of plant Outotec supplied.
Thoughts​
There was a lot to unpack in this judgement.
Key points to take away for both acoustics professionals and clients alike are:
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Any noise modelling or assessment of the initial design for the facility undertaken during the planning and/or permitting stages of a project should not be relied upon by a contractor when engaged in a design and build contract. The joint experts found grave errors in the noise models and assessments provided to the Environment Agency, and agreed that it was unlikely that the design in front of the regulators would have been able to operate without causing significant adverse effects to the surrounding community. This did not, however, alter the main contractor’s duty to provide a facility which complied with the environmental permit.
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The experts did not agree what compliance with the permit actually meant in terms of acoustic performance standards. Complicating this matter was the permit requirement to construct and operate the facility in accordance with the reports submitted to the Environment Agency, which set out expected noise levels at offsite receptors, but which the experts had identified as being gravely flawed documents. However, the judgement considered that at the most basic level, compliance with the permit was to ensure that “emissions from the activities shall be free from noise and vibration at levels likely to cause pollution outside the site, as perceived by an authorised officer of the Environment Agency” and that the facility provided by M+W did not achieve this standard.
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It is vitally important to understand that multiple acoustic criteria may be incorporated in a contract. They may be directly referenced, such as a schedule of equipment noise levels set out in an annex, or they may be indirect through a general requirement e.g. to comply in all respect with all the latest relevant legislation, the Environmental Permit and the associated conditions, the Planning Consent, and the Control of Noise at Work Regulations 2005. Both approaches have weight and neither can be ignored by the designers. In some situations, additional studies (e.g. new baseline noise measurements) may be required to establish what the contract noise limits are.
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Some responsibility for site wide noise limits can be passed to equipment suppliers via subcontracts. In an ideal situation, a comprehensive noise model of all plant and equipment would be developed and updated as the design progresses, most likely by the main contractor. However, in lieu of such design coordination, equipment manufacturers may still be obliged under their contract to ensure their items of supply conform with planning/permit noise criteria when considered in isolation.
Project team
This was a very complex case, and we received fantastic support from instructing solicitors Walker Morris LLP who ensured that were always fully aware of proceedings, and Mr Williams' duties under Part 35 of the Civil Procedure Rules. In addition, Outotec's Counsel, Adrian Williamson KC, provided exceptional insight into the critical issues of the dispute.