Multiplex project director claims Wembley steel contractor鈥檚 prices were 鈥榦ut of this world鈥
Ashley Muldoon, Multiplex鈥檚 project director for Wembley stadium, returned to the witness stand this week as hearing began into the level of damages to be paid by Cleveland Bridge (CBUK) on the project.
Muldoon engaged in heated exchanges with Adrian Williamson, CBUK counsel, during which he accused the steel contractor of putting forward prices that were 鈥渙ut of this world鈥. He added that during the project he feared CBUK might try to 鈥渉old [Multiplex] to ransom鈥.
The dispute is over whether a 拢12m fixed-price agreed for elements of CBUK鈥檚 work in February 2004 includes temporary roof works. CBUK says the works fell outside the 拢12m so it should be paid separately for them. Multiplex claims the revised price agreement drawn up in February 2004, six months before CBUK walked off the project, placed the temporary roof works in the 拢12m lump sum 鈥 not in a cost-plus arrangement separately agreed for other works.
Muldoon said that although the works were not specifically cited as part of the 拢12m, what was excluded was defined. The works are not on that list, which covers most on-site steel erection work.
Williamson said Muldoon鈥檚 claimed ignorance of some financial aspects of the project was 鈥渟imply incredible鈥, and that he was back-tracking on agreements with CBUK.
Brian Rogan, CBUK鈥檚 managing director, said: 鈥淚鈥檝e been in the industry for 35 years and in every job I鈥檝e done, temporary works have been a function of erection. It has nothing to do with fabrication.鈥
If CBUK wins, it would reduce the size of Multiplex鈥檚 拢20m claim against it. This is due to go to trial in the spring. CBUK鈥檚 liability for damages is 拢6m, but the maximum penalty it may face when revaluations are considered is 拢13m. The case continues.
Postscript
Wembley client WNSL faced controversy this week after it sought a legal declaration that it was not liable to pay charges of more than 拢660,000 on a 拢2.5m lease it took out for car parking and access rights in 1999.
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