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Highlights

  • SkyCity Entertainment files lawsuit against Fletcher Building for NZ$330 million over NZICC project delays.

  • Allegations include gross negligence and breach of contract tied to a 6.5-year delay in completion.

  • Fletcher confirms construction is complete and handover is expected ahead of NZICC’s February 2026 opening.

     

SkyCity Entertainment Group (ASX:SKC) has initiated legal proceedings against Fletcher Building, seeking NZ$330 million (US$306 million) in damages over extensive delays in the construction of the New Zealand International Convention Centre (NZICC) in Auckland.

In its announcement, SkyCity stated the damages claim is based on losses sustained from the project being delayed by more than six and a half years beyond its original completion date. The project, originally scheduled to be a major tourism and business events hub, has been significantly delayed, prompting mounting frustration from stakeholders.

SkyCity alleges that Fletcher Building committed serious breaches of its contractual obligations, citing "gross negligence" and "persistent, flagrant or wilful neglect" in fulfilling the terms of the building works contract. These claims underline the extent of dissatisfaction with how the construction project has been managed and delivered over the years.

According to SkyCity, multiple attempts were made to settle the issue outside of court, but discussions with Fletcher did not yield a resolution. As a result, the company has decided to pursue compensation through the legal system in what is likely to become one of New Zealand’s most closely watched commercial disputes in recent years.

In response, Fletcher Building acknowledged receiving the claim and defended its record on the project, noting that it had already paid significant liquidated damages to SkyCity for prior delays. The company has signalled its intent to “vigorously defend” itself against the allegations.

Fletcher also confirmed that construction work on the NZICC is now complete, and that it anticipates handing over the site to SkyCity ahead of the convention centre’s planned opening in February 2026. However, it also disclosed that, following a reassessment of costs related to the final stages of the project, it expects to record a further provision of between NZ$12 million and NZ$15 million.

The NZICC has been under development for several years and has faced numerous setbacks, including construction issues, a major fire in 2019, and COVID-related disruptions.