SkyCity has initiated legal action against Fletcher Building and The Fletcher Construction Company, demanding $330 million in damages due to “continued delays” in the construction of the NZICC.
The New Zealand International Convention Centre was originally scheduled to open in 2020, but the project was delayed after a devastating fire damaged the construction site the year before the planned opening. As a result, the NZICC’s opening has been postponed to 2026.
SkyCity said that it has suffered losses caused by the delays, including those resulting from the fire.
“SkyCity’s claim alleges that Fletchers’ breaches of contract, including those which caused the fire, constituted gross negligence and/or a persistent, flagrant or wilful neglect to carry out obligations under the building works contract,” the company stated on NZX.
SkyCity asserted that it is entitled to $330 million in liquidated damages from Fletchers according to the contract.
Chief executive Jason Walbridge stated that the convention centre was originally expected to be completed in about three years, but the construction has now extended to nearly 10 years.
“This is a project of key importance not only for SkyCity but also Auckland and the wider New Zealand economy,” he said.
Regardless, SkyCity remains “confident” the convention centre will open in February 2026 and anticipates the building will be handed over during the second half of this year.
Walbridge said they are accelerating preparations for the opening, with recruitment for key roles already in progress, along with plans on welcoming visitors “to enjoy the world-class experience we will have on offer”.
Meanwhile, Fletcher Building acknowledged the lawsuit and stated that it would defend its position.
“Accordingly, Fletcher Construction will vigorously defend itself against the SkyCity claim for further liquidated damages beyond the capped amount provided for in the building works contract,” the company said.
“Whilst the delivery of the NZICC project has suffered from a number of challenges, including as a consequence of the fire and Covid-related impacts, Fletcher Building rejects absolutely that it has breached its contract with SkyCity in the manner alleged.”
Fletcher also noted that it has already paid the liquidated damages to SkyCity due to the delays.
Fletcher Building confirmed that construction of the NZICC has been completed. The company stated that its current focus is on addressing defects, finalising the complex commissioning processes, and obtaining the necessary council approvals.
“Fletcher Building anticipates handing over the site to enable SkyCity to commence its operational readiness activities during the second half of 2025, in preparation for SkyCity’s announced opening in February 2026.”
Net costs to finish the project are said to have been reevaluated, taking into account the estimated expenses and resources needed for the final phases. The company has also expressed its intention to collaborate closely with SkyCity.