Ryan Bridge talks to property reporter Anne Gibson about SkyCity suing Fletcher Building and Fletcher Construction for $330 million.
Video / Herald NOW
SkyCity is suing Fletcher Building and the Fletcher Construction Company for $330 million, saying it had taken 10 years instead of three to build the New Zealand International Convention Centre.
In an NZX notice issued today, SkyCity explained the action.
The claim seeks damages for losses incurred by SkyCity arisingfrom ongoing delays in the completion of the project, including those that resulted from the 2019 fire.
In response, Fletcher said it had already flagged risks associated with the convention centre (NZICC), it was committed to delivering the project and would vigorously defend itself.
But SkyCity said the NZICC was now nearly six and a half years behind the contractually agreed delivery date of January 2019.
Convention centre fire in 2019 sparked legal action by SkyCity. Photo / Dean Purcell
SkyCity’s claim alleges that breaches of contract, including those that caused the fire, constituted gross negligence and/or a persistent, flagrant or wilful neglect to carry out obligations under the building works contract.
SkyCity claims it is entitled under the contract to liquidated damages of more than $330m from Fletcher.
“SkyCity has attempted to resolve these claims by agreement with Fletcher but has been unable to do so.”
SkyCity chief executive Jason Walbridge said the project was significantly delayed.
“The NZICC was originally scheduled to take approximately three years to build, and it has now taken almost 10.
“This is a project of key importance not only for SkyCity but also Auckland and the wider New Zealand economy.
“We remain confident in our opening date of February 2026 and expect the building to be handed over to us in the second half of this year.”
SkyCity chief executive Jason Walbridge. Photo / Jason Oxenham
Fletcher is due to finish its work at the end of this month.
Wallbridge said SkyCity was preparing for the handover.
“We are ramping up for opening with recruitment for key positions already under way and exciting plans to celebrate finally being able to open our doors and welcome visitors to enjoy the world-class experience we will have on offer”.
SkyCity said it would keep the market informed, in accordance with its continuous disclosure obligations.
Fletcher said this morning that it had already paid significant liquidated damages to SkyCity for delays.
“Accordingly, Fletcher Construction will vigorously defend itself against the SkyCity claim for further liquidated damages beyond the capped amount provided for in the building works contract.
“Whilst the delivery of the NZICC project has suffered from a number of challenges, including as a consequence of the fire and Covid-related impacts, Fletcher Building rejects absolutely that it has breached its contract with SkyCity in the manner alleged.”
Fletcher confirmed that it had completed the construction work and its focus was now on remediating defects and, seeking to work collaboratively with SkyCity, completing the complex commissioning processes and securing required council signoffs.
It expected to hand over the site to enable SkyCity to commence its operational readiness activities during the second half of this year, in preparation for the announced opening in February.
Anne Gibson has been the Herald’s property editor for 25 years, has written books and covered property extensively here and overseas.
