Builder Sues Star for Queen’s Wharf Resort Cost Overruns

Builder Sues Star for Queen’s Wharf Resort Cost Overruns

Time Stamp: August 25, 2023 10:09 AM

The shine that came from Star Entertainment’s shares jumping 18% just two weeks ago has been somewhat scuffed up, with more bad news returning for the Australian casino operator. This time it’s a lawsuit brought by a builder over its co-owned $3.6bn ($2.31bn) integrated casino resort in Brisbane, Queen’s Wharf.

Stephen Mayne, author of the Mayne Report, took to Twitter with a news clipping of the suit by construction firm Multiplex:

According to the Brisbane Times, Multiplex has alleged breach of contract and deceptive conduct against Destination Brisbane Consortium (DBC), the consortium Star is part of. DBC is a joint venture into Queen’s Wharf that gives Star half and Hong Kong-based firms Far East Consortium and Chow Tai Fook Enterprises the other 50%.

1000 days of lost productivity”

The construction firm filed its suit in Brisbane Supreme Court late July, alleging DBC has not reimbursed it for 23 “excusable delay events” and for adverse weather resulting in over “1000 days of lost productivity and about AU$313m ($231m) in losses.”

Multiplex is seeking over AU$400m ($295m) for the alleged cost overruns of Queen’s Wharf. It also alleges DBC failed to “communicate design changes,” which led to another cost hike of at least AU$38m ($28m). In June, Queen’s Wharf hit its fourth delay in 18 months and only expects to open in April.

According to Business News Australia, The Star issued a statement this week to the Australia Stock Exchange (ASX) acknowledging the Multiplex lawsuit, and indicating it would defend itself against the claims. The Star also told the ASX that DBC had hit Multiplex with its own lawsuit for “liquidated damages payable for delay in achieving key milestones under the contract.”

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