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