Fletcher takes action over NZICC repair

A Fletcher Building subsidiary is taking legal proceedings over insurance at the $750 million New Zealand International Convention Centre.

“Proceedings have been initiated in relation to a difference of interpretation over an insurance policy, as it applies to the New Zealand International Convention Centre project. It is not appropriate for any parties to make further comment,” a Fletcher Construction spokesperson said yesterday.

Fletcher Construction, New Zealand’s biggest builder, is the head contractor on repairs to the centre after it was badly damaged by a fire in October 2019.

SkyCity Entertainment Group, owner of the convention centre, said in September 2020 that reinstatement costs were estimated to be at least $336m.

Whether that is still enough — in an industry hit by price rises and severe labour shortages — is unknown.

SkyCity chief executive Michael Ahearne told the Herald on Tuesday that he had been on a tour inside the convention centre building with Fletcher Building chief executive Ross Taylor in the past week. Ahearne expressed satisfaction with progress on the job, where he said about 600 people were working.

Big insurance groups back the project. The Herald reported in 2020 that more than 80 per cent of the cover was held by American insurance giant Chubb, with the rest held by Australia’s second-largest insurer, QBE, and Warren Buffett’s Berkshire Hathaway.

SkyCity said in November 2019 that its insurers had confirmed coverage for damage caused by the fire to the convention centre and the adjacent Horizon Hotel.

Fletcher Building said then that it was “working closely with the insurer for the contract works and third party liability insurances which are in place on the project.

“Fletcher Building notes and agrees with the comments by SkyCity confirming the credibility of the insurer and their ability to meet their obligations.”