Skanska takes £1.8m hit on Brighton Dome refurb

Skanska has taken a £1.8m hit on its £38m Brighton Dome refurbishment contract following cost overruns.

The contractor had demanded a £5m settlement from Brighton & Hove Council when the project ran into complications after work began in 2002.

Following 18 months of negotiations after work finished, Skanska has agreed to a £3.2m payment from the council, rather than incur further costs to go through a lengthy court battle.

The council is expected to pay £1.6m up front, with the rest to follow later.

Nick Dodds, manager of the Dome, said: "The refurbishment was immensely complex. There were many unforeseen problems, which resulted in the project taking longer than expected."

Skanska refused to comment on the case, while the council was unable to respond.