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Builder and hotels firm Sisk settle claim over damages

By Peter Flanagan

Published 23/09/2015

The luxury Shangri-La Hotel in The Shard skyscraper in central London opening a year late
The luxury Shangri-La Hotel in The Shard skyscraper in central London opening a year late

Irish construction giant Sisk and a hotels firm have settled a multi-million euro claim for damages over its work on a hotel in the tallest building in the UK.

Shangri-La Hotels had sought damages of £57.8m from Sisk over alleged delays by the Irish firm which resulted in the luxury Shangri-La Hotel in The Shard skyscraper in central London opening a year late.

Among the allegations that Shangri-La made were that problems with the fit-out of the hotel by Sisk meant that work fell 37 weeks behind schedule.

The hotelier added that Sisk was responsible for "substantial critical delays" and alleged that sections of Sisk's fit-out had to be replaced in their entirety.

Sisk lost the contract to fit out the hotel in August 2013.

Sisk, however, strongly refuted those claims, and launched an action of its own against Shangri-La, claiming damages of £26.8m. The Irish company accused Shangri-La of breach of contract.

However, as part of a settlement announced yesterday, both those claims have now been dropped.

In a statement, the Irish company said: "John Sisk & Son Limited and Shangri-La Hotels PTE Limited wish to confirm that they have reached an amicable settlement to the claims and counter-claims recently issued in the Technology and Construction Court in London relating to the Shangri-La Hotel at The Shard."

And the company added: "There are no admissions of fault or liability by either party in the settlement reached."

Terms of the settlement have not been revealed but informed sources suggest it took the form of a so-called "walk away" agreement.

Such a deal usually involves both sides dropping their claims and accepting whatever costs have already been incurred up to this point.

Neither side would make any kind of payment or payment in kind in such a settlement.

The Shangri-La Hotel is the centrepiece of The Shard since it opened 16 months ago.

Belfast Telegraph

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