More trouble for Multiplex at WembleySource: LONDON AAP Date:...

More trouble for Multiplex at Wembley
Source: LONDON AAP
Date: 2005-Dec-01 08:55 PM

Australian company Multiplex has suffered more trouble during construction of the new Wembley Stadium with a sub-contractor falling into administration.

Piping company SGD Engineering called in administrators this week after a contractual dispute with Multiplex left it STG2 million pounds ($A4.7 million) out of pocket and its work incomplete.

Multiplex's changes to piping requirements - there are 2618 toilets alone - caused SGD to reportedly overrun costs by more than 40 per cent, indicative of the problems that have plagued the Wembley redevelopment.

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"In 18 years of trading we've never had a problem like this," an SGD insider told Construction News.

"We are currently taking stock of the situation and we are challenging them on several fronts."

Multiplex has sued SGD for breach of contract, but administration meant that money was unlikely to be recovered.

"We've gone out of our way to help SGD on this," a Multiplex spokesperson told The Guardian.

"We tried to help them out going forward but there's only so far we can go."

The $A1.8 billion redevelopment is expected to be completed and handed over for us on March 31 next year, enabling the FA Cup final to be staged there on May 13.

However Cardiff's Millenium Stadium is on standby to again hold the event should Wembley not be ready.

Multiplex has already conceded it would lose $109 million on the project.