Multiplex’s has kept to its forecasts of substantially completing the $1.12 billion Wembley Stadium project by the end of June 2006.
In the April 2006 update, the company said substantial completion by the end of June will leave certain works and certain activities such as commissioning and cleaning to be completed after this date.
“Multiplex has formally advised its client, WNSL, that Multiplex is entitled to substantial and legitimate extensions of time under the terms of its construction contract which will extend the contract completion date until at least September 2006.
“Notwithstanding that it is Multiplex’s belief that it has until at least September to complete, Multiplex is targeting substantial completion by the end of June as noted above, although it is not anticipated to finish commissioning, cleaning and other works until September 2006,” the company said in a statement.
In addition, Multiplex said there are a number of critical works and activities that are the responsibility of WNSL, and the timing of the completion of these works is under the control of WNSL.
“The date for the opening of the stadium and the hosting of the first event will ultimately be a matter for our client,” Multiplex added.
Importantly, Multiplex has not made further adjustments to its market guidance for the full year 2006.
Property analyst said that if Multiplex can get through May and June without any hiccups, then the full costs of Wembley should be contained in the 2006 financial year.
However, the worst case scenario of further delays could result in the full costs of Wembley spilling in the 2007 financial year.
Multiplex is currently embroiled in a £38 million ($A92 million) court battle with Cleveland Bridge in a bid to prove that the delays at the Wembley Stadium project were not its fault.
Meanwhile, CBUK is counter-suing Multiplex for £22.6 million ($A53 million) and it claims the delays in erecting the arch were a result of the weak concrete base, which had to be relaid.
CBUK then quit the project in August 2004 and as a result Multiplex hired a new contractor in Hollandier.
The court case has entered into its second week in what is set to be a four week long trial.
In the first week, the court heard of “Armageddon Plan” which CBUK alleged was a conspiracy to drive CBUK out of business.
Meanwhile, Multiplex alleged that the board of directors at Cleveland and its major shareholder Saudi businessman Sheikh Abdullah Al-Rushaid formed a plan “Project Trafalgar” – where CBUK would walk away from the project.
Multiplex is also considering suing Wembley National Stadium Limited, the stadium’s owner, for £150 million.
By Nelson Yap
