Legal fight could follow delays to Savoy £100m refurb

Delays during the £100m refurbishment of the Savoy Hotel in London could lead to the job busting its budget.

The hotel's owners have admitted the completion date is slipping from the planned opening date of this Autumn.

Main contractor Chorus is expected to still be on site at the end of this year as the client now plans a "phased autumn/winter 2009 re-opening".

Delays are believed to have been caused by the discovery of higher than anticipated levels of asbestos.

The job is thought to have been let on a lump-sum contract which could lead to a legal wrangle over claims and counter-claims.

One industry expert said: "Hotel refurbishments are notoriously difficult - this one seems to be no different.

"They have a habit of over-running and that usually leads to legal action because the hotel is losing out on revenue every day it is closed."

One of the most infamous hotel jobs was John Laing's refurbishment of the Great Eastern Hotel in the City of London.

Client Sir Terence Conran won £8.9m in damages from the contractor following delays and cost over-runs on the project.

Contract Journal first revealed in February that doubts were growing over the Savoy's planned opening date.

Events organisers who had booked the hotel ballroom for later this year have now been told the venue will not be ready.

A spokesman for Fairmont Hotels said: "We are still on target for a phased autumn/winter 2009 re-opening of the hotel and public areas.

"However, with a project of this magnitude and scope, and mindful of the sensitivity of our relationships with our long-term loyal client base - particularly with the Lancaster Ballroom - we have decided not to accept bookings for events this year in case, for any unexpected reason, a particular event room's re-opening was delayed."

Chorus declined to comment.

The fully refurbished hotel will contain 268 rooms and suites with the cheapest room costing £350 per night.