Multiplex Launches Claim Against Mott MacDonald

Multiplex has launched a £250m High Court claim against Mott MacDonald over Wembley Stadium.The writ alleges that Mott MacDonald failed to prepare a steelwork design that could be produced within the cost plan.

The contractor, which has since been renamed as Brookfield, also alleges that Mott MacDonald made a series of design changes which were beyond the scope of normal design development.

Mott MacDonald has always denied any responsibility for problems on the £757million stadium, which was completed over a year late.

The Multiplex writ says: "Mott issued erection sequence design information that contained errors and/or failed to amend the said design information timeously. [They] produced steelwork drawings and/or design information that were defective and inadequate and failed to take reasonable or any steps to correct those deficiencies...[And] Mott failed to advise Multiplex that its design was incomplete and/or inadequate and/or complex at any stage during the project thus preventing Multiplex from taking more effective steps to re-programme the works."

Wembley Stadium Crack

Engineers have played down fears of structural damage to Wembley stadium calling the development of a crack 'natural settling'.Strong winds at the stadium on Monday were rumoured to have caused a four-floor high crack at the stadium, forcing the partial closure of some areas.

However a stadium spokesperson said engineers Mott Macdonald had reviewed the situation, and that “reports suggesting a crack in the stadium as a result of the movement are incorrect...there was some minor movement in the building on Monday morning”, but “as with all large structures, the stadium had been designed with a movement tolerance factored in.”

“It’s business as usual,” she said, “and the stadium remains fully operational”.

Engineers Mott Macdonald confirmed: “Our investigations are ongoing, but show that slight movement, within expected limits, has taken place across an expansion joint...Large buildings are designed with expansion joints to allow for these natural movements caused by wind and thermal effects.”

Brookfield launch bid for Multiplex

Brookfield Asset Management Inc has made a $6.5-billion all-cash takeover bid for Multiplex Group, the major Australian construction company behind London's recently completed but Wembley Stadium.

The deal would give Brookfield, a major Toronto-headquartered conglomerate formerly known as Brascan, its first major foothold in Australia through Multiplex. The Sydney-based company has spent the last few years wracked by controversy and speculation that it was teetering on the edge of bankruptcy.

Under the terms of the offer, worth Aus$7.3 billion, Brookfield needs to acquire more than 50 per cent of Multiplex's shares, which are listed on the Australian Stock Exchange.

The Roberts Family Nominees, which holds about 26 per cent in Multiplex, has agreed to Brookfield's offer, Multiplex said in a statement. The board also agreed to the offer, it said. "Multiplex welcomes Brookfield as a significant Multiplex securityholder," the company said.

Multiplex directors had undertaken to support the proposal once they receive an independent report that concludes it is fair and there isn't a superior bid available.

Jeff Blidner, managing partner at Brookfield said, "We believe that this offer maximizes value for all Multiplex security holders in a structure which provides the certainty of an all-cash offer at a significant premium."

Multiplex was founded by John Roberts in the early 1960s and built a strong reputation with projects like the Telstra Stadium in Sydney Olympic Park, home of the Summer Olympics in 2000.

Alan Ritchie from UCATT talks to Personnel Today

Personnel Today, recently interviewed Alan Ritchie, General Secretary of UCATT. Here are some of the highlights:

Talking about the Olympic standoff Ritchie fears that unless the Olympic Delivery Authority (ODA) commits to the use of directly employed labour with proper employment contracts, it risks disaster.

"We're making it absolutely clear that we cannot accept a position where direct employment is not on the agenda....Direct employment would lead to better use of local labour, apprentices and improve health and safety on site".

He pointed to the successful Sydney Olympics, where direct employment was used and just one worker was killed.This compared to the Athens Olympics construction, which relied heavily on foreign labour, resulting in at least 13 deaths. Ritchie said there were probably more, as only the deaths of registered nationals were recorded.

"What we are saying to the ODA is that there is only one route to go down - the Australian route - all directly employed, working with unions in a framework for industrial relations," he said.

"Building work on the Olympic stadiums and village is due to start early next year, but so far no agreement has been reached. What the country doesn't want is another Wembley stadium debacle on its hands, Ritchie said."The ODA must learn the lessons from Wembley, where reliance on a subcontracted workforce led to chronic delays, confusion and spiralling costs," he added.

Of the Skills Shortage Ritchie said"Bogus self-employment is leading to huge skills shortages and increasing demand for migrant labour", Ritchie said. He estimates up to 55% of the 2.2 million building workers employed in the UK are operating under a false self-employment regime."

"We estimate about £2.5bn a year is being lost to the Treasury because of this issue," Ritchie said. "This is the private sector getting a subsidy from the taxpayer, and it's absolutely scandalous. The government said a new system introduced in April would curb this - it hasn't even scratched the surface."

Commenting on the Health and Safety Executive Research undertaken for the union last month which found its prosecutions for construction deaths fell from 42% to just 11% from 1998 to 2004, Ritchie said this is just not good enough. "The best way of murdering someone in the UK today is to set up a construction firm, break the Health and Safety at Work Act and end up with a paltry fine," he said. "Some of the fines handed out for deaths on-site are as little as £7,000 - it cannot be justified."

Wembley Stadium Community Day Delayed

Wembley's 'community day' has been delayed until Saturday March 17, but officials insist the stadium remains on track to host the FA Cup Final in May.

Multiplex have yet to hand over the keys to Wembley National Stadium Ltd, the Football Association's subsidiary, but officials are confident the latest delay is only minor.

Up to 60,000 people are expected to turn up to the community day, which was originally scheduled for the 3rd March. It is and there still could be a warm-up event such as an England Under-21 game a week later if Brent council agree to pass a provisional stadium safety certificate.

Wembley managing director Alex Horne said: "We still remain on track to host the 2007 FA Cup final, but the FA will only announce the 2007 Cup final at Wembley once the stadium has been granted its general safety certificate....Ramp-up events have always had to remain flexible in terms of date due to the complex nature of the project, hence today's change. I'd like to apologise to those Brent residents who had made plans to come and see us on March 3 but hope they will be able to visit on March 17 instead."

There will be a mini-football tournament on the day involving celebrity teams and visitors on the day will also help the organisers test facilities such as the turnstiles, escalators and toilets.

Wembley Trial

News has arrived via Building Magazine of the result of the ongoing dispute between Multiplex and CBUK. Judge Jackson has found that Cleveland Bridge are not liable for the temporary roofing costs.

The case centres on the breakdown between the two contracted parties that ultimately resulted in Cleveland Bridge leaving site.

According to reports in QS Week, which is documenting the trial, the two parties are suing each other for damages and breach of contract. According to the presiding Judge Jackson, the crux of the case hinges on which company folded first.

In a statement released this morning on Multiplex's website

The case that was heard yesterday in London dealt with only one element of the damages claim;
There already exists a contractual cap on all damages claims of GBP6 million;
While the judgement resulted in a reduction in the total amount able to be claimed by Multiplex for damages, Multiplex’s overall claim for damages still exceeds the GBP6 million cap on the damages claims;
Multiplex is considering appealing the decision;
Multiplex continues to pursue substantial claims for abatement; and
This judgement does not alter the overall expected financial outcome of the Wembley project.

So it seems the case will continue. Whilst extra time may well be needed, nobody wants to see this one settled on penalties...