This article is from the Australian Property Journal archive
Multiplex is looking to prove that the delays at the $1.12 billion Wembley Stadium Project were not its fault, with a £45 million ($A107 million) lawsuit in United Kingdom High Court against Cleveland Bridge.
Multiplex is also considering suing Wembley National Stadium Limited, the stadium’s owner, for £150 million.
According to The Times, Multiplex claims WNSL made 500 changes to their brief, contributing to the delay in completion.
Meanwhile, in the court this Tuesday, Cleveland Bridge, the steel contractor who originally worked on Wembley Stadium, is counter-suing Multiplex for £22 million ($53 million).
Cleveland who built and erected the arch at Wembley Stadium, quit the project in August 2004.
Cleveland said the delays in erecting the arch were as a result of the weak concrete base, which had to be relaid.
Multiplex said the delays are Cleveland’s fault and Cleveland’s departure forced the company to hire a new contractor, in Hollandier.
Multiplex was unable to secure a fixed-price contract with Hollandia which in turn resulted in massive cost blow-outs on the project.
The court case is expected to take four weeks in the High Court in London.
The Wembley Stadium debacle has so far cost Multiplex $A484 million, including $50 million underwritten by the Roberts Family.
A victory in this case for Multiplex will mean it is able to recoup some of the costs.
Property Investment Research’s REIT analyst Peter Papadakos told Australian Property Journal last month, the best outcome from legal proceedings for the company is to be awarded $100 million plus – the worst outcome is no compensation and further embarrassment.
Meanwhile, the Wembley Stadium project is due to be substantially completed and handed over to Wembley National Stadium Limited.
By Nelson Yap
