Senior figures welcome out-of-court settlement between Multiplex and WNSL, but fear for the damage already done to the reputation of the UK construction industry

Industry figures this week welcomed news of an out-of-court settlement between Wembley National Stadium Limited and Multiplex, describing the dispute as an 鈥渁ppalling saga鈥� that had caused huge damage to the sector鈥檚 reputation.

WNSL, the stadium鈥檚 client, and the FA, its owner, agreed at the end of last week to pay Multiplex an additional sum of 拢36m to complete the project in time for next year鈥檚 FA Cup final. The deal, which involves a 拢70m payment from WNSL offset by a 拢34m late penalty fine, is intended to draw a line under all remaining disputes on the project. The client and contractor will now work alongside each other to complete the stadium.

Senior industry representatives have welcomed the deal, saying the dispute was hurting the industry鈥檚 reputation.

Stephen Ratcliffe, chief executive of the Construction Confederation, said: 鈥淚t鈥檚 obviously a relief that the problems seem to have been sorted out at last. The sad thing is the damage done to the perception of the industry as a whole. It really is an own goal.鈥�

Ratcliffe鈥檚 view was echoed by John Spanswick, Bovis Lend Lease鈥檚 chief executive and chairman of the Major Contractors Group. He said: 鈥淚鈥檓 pleased that the parties have reached a deal, as the difficulties haven鈥檛 helped the reputation of UK construction.鈥�

Rob Smith, senior partner at consultant Davis Langdon, added that the dispute could have cast a shadow over other large construction projects.

He said: 鈥淚f it hadn鈥檛 been resolved it would have spiralled into a total embarrassment for our industry. We are particularly sensitive now with the Olympics.

鈥淣obody has won or lost in this. Both the FA and Multiplex have been damaged.鈥�

The deal will increase Multiplex鈥檚 contract price to 拢494m and will cut its losses to 拢147m. The total cost to the FA has risen to about 拢790m from an original estimate of 拢757m.

Rudi Klein, the chief executive of the Specialist Engineering Contractors Group, said the outcome could frighten more clients into choosing best value over lowest price.

He said: 鈥淎t one time, WNSL were saying it had got a good low price and wouldn鈥檛 be doing any deals. The cheapest price was what they cared about, but they鈥檝e been made to eat their words. As an industry, we can be thankful this appalling saga has come to an end.鈥�

Andrew Roberts, Multiplex鈥檚 chief executive, said: 鈥淲e鈥檙e very pleased to have reached agreement with WNSL and the FA to put our differences behind us and put all our joint efforts into completing Wembley stadium.鈥�