Hong Kong based hotel operator Shangri-La is reportedly suing contractor John Sisk and Son over the near twelve month delay in the opening of its five-star Shangri-La at The Shard.
The reports say that Shangri-La has lodged a £57 million High Court writ against the contractor over delays to the fit-out of the 202 rooms which led to the overdue opening.
Shangri-La alleges that there was inadequate planning and that Sisk failed to supervise its subcontractors, leading to critical delays.
Sisk was removed from the contract in August 2013 and replaced by Chorus. The hotel, on levels 34 to 52 of the London Bridge Quarter skyscraper, finally opened in May last year, almost a year behind schedule.
Shangri-La’s claim relates to the cost of putting right the work carried out by Sisk, which they put at £40.2 million, along with £13.6 million for the delayed opening, £1.9 million for damages and £1.6 million in costs.
In response a Sisk spokesman told the Construction Enquirer that the company had been trying to reach a financial settlement with Shangri-La since the summer of 2013, but the two parties had been unable to arrive at a satisfactory conclusion.
The spokesman then strongly refuted Shangri-La’s allegations and stated that Sisk will be pursuing its own financial claim against the operator.
“Sisk considers as unlawful the decision by Shangr-La to terminate its employment under the contract, denies Shangri-La’s claims in their entirety and has substantial claims against Shangri-La.
“The issue is now subject to a legal process which Sisk has initiated to continue to pursue its financial entitlement and therefore no further comment is possible.”
Shangri-La has yet to issue a statement.
