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Hliton Paddington at centre of legal row between construction firms

12 April 2007 by
Hliton Paddington at centre of legal row between construction firms

The Hilton London Paddington hotel is at the centre of a £15m legal row between construction firms Costain and Skanska and engineering company TME.

The former Great Western Royal hotel, which was renovated at a cost of £60m, was handed over to owner property developer Muirgold a year late in February 2002.

Torpy went into voluntary liquidation in December 2001 before eventually going bust in May 2004.

In a writ, the joint venture team claimed that TME botched drawings, which meant services had to be redesigned and located elsewhere.

The writ adds that 23 weeks of the eventual 70-week delay were caused by TME, and that this part of the delay ended up costing the joint venture £15.4m

Included in this figure is an amount Costain/Skanska says TME should have paid Muirgold in liquidated damages but the joint venture ended up paying the amount itself.

At the time, delays on the refurbishment were blamed on a number of factors including the location of the hotel, which is next to the Great Western railway line and hemmed in by three roads, and that the job had four different project managers during its history.

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By Daniel Thomas

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