Builders can keep bonus for late Hydro says boss
Board told fighting contractors over £3m could increase delays
THE chief executive of Scotland’s new major music arena asked for contractors to be allowed to keep millions of pounds in bonuses even if the venue is not finished on time.
John Sharkey, head of the Scottish Exhibition and Conference Centre, told fellow board members demands for a £3 million cash incentive to be paid back if the Hydro arena is not finished by September would delay it further.
The Herald revealed on Saturday the new venue could open in late November due partly to a £9m dispute with its main contractors Lend Lease, with board members warned forthcoming gigs at the venue could be cancelled.
Fleetwood Mac, Andrea Bocelli, Depeche Mode, Peter Gabriel, the Proclaimers, Simple Minds and Jessie J are just some of the names scheduled to perform at the Hydro across September, October and November.
The feared delays and wrangling over costs between SECC and its contractor were set out in an email from Mr Sharkey sent to board members last Thursday.
In the correspondence, Mr Sharkey argued any bonus should be staged and there should be a clawback in the event of delay, but if Lend Lease challenged repayment of the bonus, SECC should not resist.
He said waiving any payback deal would allow the SECC to name an unspecified artist as the opening act for the £125m Hydro.
Yesterday, Rod Stewart was confirmed as the major opening act at the arena on September 30, which commits the SECC to open the venue on time.
After The Herald report, the SECC said the claims were “out of date”. Mr Sharkey said in reports: “We have resolved the issues and I am confident that we will open in time.”
Approached yesterday for more detail about the costs and management of the project, both SECC and Lend Lease refused to comment.
Lend Lease, whose Australian head office is now monitoring progress on the scheme, also refused to confirm or deny it was still in a dispute with the SECC or had accepted the completion bonus proposal.
Insiders have claimed problems with the project have been a major issue on the site for months.
One prominent Scots architect, who asked not to be named, said many had raised questions about the project’s progress. He added: “You have one of the world’s best contractors, Lend Lease, best
It’‘
s a technical dream team for a project like this. It appears to be a classic Scottish Parliament situation
architects Foster and Partners and best engineer Arups. It’s a technical dream team for a project like this. It appears to be a classic Scottish Parliament situation.”
Meanwhile, after his Hydro announcement, Rod Stewart said: “I’ve been looking forward to this as I’ve watched the Hydro take shape. 2013 is a momentous year for me.
“I cannot wait to get back to Scotland and perform in front of a live audience at this spectacular venue.”