Fit-Out Contractor Faces £57 Million Writ Following Claims of a 37 Week Delay on Shard Hotel

Case Summary

Fit-out contractor John Sisk & Sons currently faces a £57 million writ following claims that they had caused substantial delays of up to 37 weeks behind the original schedule for the fit out of the luxury hotel chain Shangri-La’s flagship hotel, set within the iconic Shard skyscraper in London.

Shangri-La claims that Sisk caused critical delays in its failure to properly plan its works, procure specified materials either in time or at all, failed to supervise its subcontractors’ workforce and failed to give Shangri-La proper notice of delays. The delays ultimately led to the hotel being opened almost a year behind schedule, causing losses of £13.6 million.

Shangri-La allege that Sisk defectively installed marble wall tiles in guestrooms across 15 floors of the hotel, all of which had to be replaced due to Sisk’s failure to remove temporary resin mesh backing from the underside of the tiles before fixing them, meaning that they did not stick successfully to the substrate. Shangri-La also claims that the progress of the installation of these tiles between November 2012 and August 2013, before Sisk was replaced by competitor Chorus, could be described as “illusory”.

Sisk denies the claims against it, and considers the decision by Shangri-La to terminate its employment under the contract as unlawful and has substantiated claims against Shangri-La, which Sisk has initiated in attempt to pursue its financial entitlement.

To date, the parties have been unable to reach a satisfactory settlement.

How can such a situation be avoided?

Situations such as this can be avoided through effective management of contracts.

It is imperative to avoid any unnecessary claims by ensuring that whichever contract has been agreed and entered into by the parties is complied with, for example, ensuring that notices of delays and applications for extensions of time are submitted in due course as required by the contract. Payment provisions are a prime example of potential dispute areas where the contract mechanism has not been complied with.

Kenzie Group can help to avoid any unnecessary disputes arising.  Our professional and friendly team can assist with ensuring that your contract mechanisms are complied with.  This will substantially limit any claim or point of dispute one party will have against the other.

Kenzie Group can also assist where the contract mechanisms have not been complied with and one party is in a position to either claim or defend any potential disputes.

Kenzie Group’s team of legal professionals are well versed in both dispute avoidance and resolution and with backgrounds in construction, engineering and law who will help resolve the issues quickly and efficiently.

Case information gained from the following sources:

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