Photo: RNZ / Danielle Street
- SkyCity casino operator suing Fletcher Building for delays
- Alleges Fletcher negligence caused 2019 fire and delays
- SkyCity says entitled to more than $330m in damages
- Fletcher Building to defend claim, also chasing more than $100m insurance claim
Casino operator SkyCity Entertainment is suing Fletcher Building for losses incurred because of delays in completing the International Convention Centre (NZICC) in Auckland.
The company alleges that Fletcher's breaches of contract, including causing the 2019 fire, constitute negligence and have resulted in the project being more than six-and-a-half-years behind schedule.
"The NZICC was originally scheduled to take approximately three years to build, and it has now taken almost 10," SkyCity chief executive Jason Walbridge said.
"This is a project of key importance not only for SkyCity, but also Auckland and the wider New Zealand economy."
SkyCity said it attempted unsuccessfully to resolve these claims directly with Fletcher, and it was entitled to contractual damages of more than $330 million.
Walbridge said the NZICC was expected to be handed over in the second half of this year, and due to open in February next year.
"We are ramping up for opening, with recruitment for key positions already underway."
Fletcher said it had already paid significant liquidated damages to SkyCity under the contract, rejected that it had been negligent and breached its contract, and would vigourously defend the claim.
"Whilst the delivery of the NZICC project has suffered from a number of challenges, including as a consequence of the fire and Covid-related impacts, Fletcher Building rejects absolutely that it has breached its contract with SkyCity in the manner alleged," it said in a statement to the stock exchange.
"Accordingly, Fletcher Construction will vigourously defend itself against the SkyCity claim for further liquidated damages beyond the capped amount provided for in the building works contract."
Niwa captures SkyCity Convention Centre blaze still alight into the night on 22 October. Photo: Twitter / NIWA Weather
However, Fletcher said it would book a further loss of between $12m-15m in its next accounts related to the project, having taken a $165m hit in 2024.
It is also suing roofing subcontractors in relation to the fire and pursuing more than $100m from insurers.
SkyCity and Fletcher have said the handover of the building was on track for the second half of 2025, with the opening due in February 2026.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
