The owner of the $1.12 billion Wembley Stadium project, Wembley National Stadium Limited has hit back at the stadium’s builder, claiming that the latest delays are all Multiplex’s responsibility.
Many property analysts believe the latest stoush between WNSL and Multiplex has an air of déjà vu – with the matter likely to end up in the British courts.
Yesterday, WNSL chief executive Michael Cunnah said Wembley Stadium “firmly rejects” Multiplex’s statement and refutes any claims the group has made against WNSL.
Cunnah said the delays experienced on the stadium have and continue to be under the complete control and responsibility of Multiplex.
“Although the stadium appears to be nearly finished, Multiplex has an important and substantial amount of work to complete, including the installation, testing and commissioning of mechanical and electrical systems,” he added.
"Wembley Stadium took the sensible decision in March to rule out all events at the stadium in 2006 as we were sceptical of Multiplex’s ability to meet the various deadlines they have given us.
“The situation remains the same – Multiplex need to make more progress in delivering the stadium before we can name an opening date,” Cunnah said.
Earlier this week, Multiplex said a practical completion of the Wembley Stadium is unlikely to be completed by September 2006.
“In order to achieve practical completion of Wembley Stadium certain works which are the responsibility of WNSL, rather than Multiplex must first be completed.
“WNSL has not begun some of these works. Furthermore, once Practical Completion has been achieved, it is the responsibility of WNSL to carry out a series of critical works and activities in order to make the stadium operational for events.
“The timing and hosting of the first event is therefore entirely a matter for WNSL,” Multiplex said in statement.
Property analysts told Australian Property Journal that if the parties become locked in dispute, the completion of the Wembley Stadium project might be delayed until early 2007.
“If Multiplex is saying it is WNSL’s responsibility to complete the works and the Wembley Stadium and WNSL is saying that it is Multiplex’s responsibility, in meantime, who is working on the project?” Property Investment Research’s REIT analyst Peter Papadakos said.
Meanwhile, market sources continue to speculate that Multiplex is considering taking legal action against the WNSL, a subsidiary of the Football Association.
In the past, Multiplex claimed that WNSL made 500 changes to their brief, which contributed to the delays at Wembley Stadium.
Last month, Multiplex won a preliminary trial against steel sub contractor Cleveland Bridge United Kingdom in the London High Court. However, any damages and remedies against CBUK totalling £32.66 million ($A81 million) are unlikely to be awarded before the court hearing in January 2007.
UK property sources told Australian Property Journal that WNSL has yet to derive any income from the Wembley Stadium project because it had cleared the entire 2006 calendar and moved events to alternative venues including the Millennium Dome in Cardiff, which hosted the May 2006 FA Cup Final.
Property sources said if the dispute ends up in court, WNSL might have a claim for loss of income due to delays at the Wembley Stadium.
“What Multiplex does not want to do is open a can of worms,” they said.
Multiplex shares closed 2 cents higher at $3.30.
By Nelson Yap
