Cleveland Bridge to take Multiplex to court

Cleveland Bridge has today, Monday, advised has instructed its solicitors to issue proceedings against Multiplex in the Court of Technology and Construction in London and has told Multiplex that it has no alternative but to cease all work on the Wembley Stadium contract effective immediately.

In a statement Cleveland Bridge said: "The proceedings are based upon Multiplex’s breech of contract in failing to value works and make payment in relation to monies due to Cleveland Bridge under a supplemental agreement entered into in June 2004, which was intended to bring to an end earlier occurring disputes between Cleveland Bridge and Multiplex on site. Cleveland Bridge now has no faith in Multiplex honouring its commitments and paying the sums due.

"Cleveland Bridge warned that the decision to cease work on the Wembley Stadium contract will cause a shortfall in workload and may result in redundancies at its plant in Darlington.  However, Cleveland Bridge is working closely with staff and unions to assess the impact of the company’s action and investigate means of mitigating against it."