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Shangri-La and Shard hotel contractor settle legal row

23 September 2015 by
Shangri-La and Shard hotel contractor settle legal row

Shangri-La Hotels and the original contractor which worked on its London property at the Shard have settled their multi-million pound legal dispute.

Both parties are believed to have dropped their claims in a so-called "walk away" agreement.

The Hong Kong-based hotel chain had sought damages of £57m from Irish contractor John Sisk & Son over a series of alleged failings and delays in fitting out the interiors.

Papers filed at the High Court claimed that Sisk had allowed work on the 202-bedrooms and suites to fall as much as 37 weeks behind schedule.
Shangri-La said this resulted in the London hotel, which occupies floors 35 to 52 of the Shard, opening almost a year late.

Alleged mistakes detailed in the documents included Sisk failing to remove the backing from marble tiles which stopped them sticking properly and failing to procure mother of pearl stones for washroom panels.

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

The firm's contract was terminated in August 2013, when the Chorus Group stepped in to complete the work.

Both of these claims have now been dropped as part of a settlement which was agreed on 22 September.

In a statement, the Irish firm, 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."

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

Exact terms of the settlement have not been revealed but it is expected to have been amicable. In such an agreement each party will have dropped their claims and accepted whatever costs have already been incurred.

Shangri-La suing Shard hotel contractor for £57m >>
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