Wembley Stadium

Managing the Legal Environment: Case Study 2

Multiplex and Wembley stadium.

The basic facts and account of the project and the issues that arose can be found at this location:

http://www.smh.com.au/news/Business/The-Multiplex-complex/2005/03/04/1109700679681.html#

There is also other information available – and some will be loaded into moodle (although you can find other information on this case in a variety of locations).

Other facts relevant to the discussion and analysis.

  • The contract had Multiplex agreeing to take responsibility for construction of the stadium for a fixed maximum of £356m.
  • The project was 18 months overdue and massively over budget (est in excess of £900m).
  • Death, danger and damage caused additional delays and uncertainty.
  • Legal action was taken both by and against Multiplex – principally involving Mott MacDonald and Cleveland Bridge (but not only).
  • The contract included a penalty clause of £14000/day.
  • £120m in lottery funding was granted for the purpose.
  • A range of events and competitions (including the FA Cup final) – 12 in all – had to be relocated to other venues during 2006.

Questions:

  1. What were the principal issues that arose from the contracts to which Multiplex was a party? How were these resolved (or not)?
  2. What were the direct and indirect impacts for Multiplex of these issues and consequences?
  3. How did Multiplex attempt to minimise these impacts? How successful were those attempts?
  4. What procedures and safeguards could Multiplex have put into place to minimise or avoid the issues that arose?

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