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Multiplex fights back with its own £22m writ

NEWS

MULTIPLEX said steelwork firm Cleveland Bridge would cost it a minimum of £10 million in damages after claiming Cleveland tore up its contract to finish its £60 million job at Wembley In its 19-page writ, which it issued at the Technology & Construction Court in London this week, the Australian contractor said CBUK 'wrongfully and in repudiatory breach of contract gave notice that it would no longer carry out further work under the subcontract' Multiplex said it 'was entitled to treat CBUK as having repudiated the subcontract'as well as a supplemental agreement the pair struck in June.

The writ adds: 'By reason of CBUK's repudiation of the subcontract Multiplex has and will incur additional loss and expense in arranging for others to complete the subcontract works.'

Multiplex said it was unable to give an exact amount for the anticipated losses but added 'that its future damages are likely to be in excess of £10 million' In all the firm is claiming at least £22 million from Cleveland Bridge, a sum which includes a claim that it overpaid the Darlington firm by £12 million.

The writ stated that Multiplex valued Cleveland's work at the end of June, when the pair's working relationship finally broke down, at £41.2 million.

Multiplex said it had already paid CBUK £53.6 million and had made a further payment of £535,000, known as certificate payment number 38, to Cleveland in the middle of July, meaning 'certificate of payment number 38 had a negative value of £13,952,537.91 (including VAT)' Multiplex has also widened its case against Cleveland Bridge by criticising its work on the Wembley arch.

The firm claimed Cleveland 'failed to exercise reasonable care and skill' in the design and fabrication of the arch.

It added: 'CBUK failed to carry out the arch fabrication and construction in a good and workmanlike manner.'