Published 26 November 2019, replacing story based solely on Fletcher statement:
SkyCity Entertainment Group Ltd said today its insurers had confirmed that the company’s contract works insurance policy “will respond” in relation to damage to the NZ International Convention Centre & adjoining Horizon Hotel from the fire on 22 October.
SkyCity said the convention centre contractor, The Fletcher Construction Co Ltd, was an insured party under both SkyCity’s contract works insurance policy & third-party liability insurance policy.
SkyCity said third-party cases were being reviewed on a claim-by-claim basis.
The site, between Hobson & Nelson Sts in downtown Auckland, was handed back to Fletcher Construction on 1 November. Access remains restricted while safety & structural assessments & investigations into the cause of the fire are completed.
“Once the extent of the damage to the NZICC and Horizon Hotel [both under construction by Fletcher] is known, SkyCity will, in consultation with Fletcher Construction, be able to determine the impact on the project delivery timeline. Both SkyCity & Fletcher Construction remain committed to completing the NZICC to the standard agreed with the NZ Government.”
SkyCity’s insurance broker is Willis Towers Watson.
Fletcher said in a statement it expects to be in a position to provide a further update at its half-year results announcement in February.
Fletcher subsidiary The Fletcher Construction Co Ltd is the head contractor on the project. The company said: “Insurers for the project have confirmed that, based on their assessment to date, the contract works insurance policy will respond to loss & damage resulting from the fire. In addition, the third party liability insurance policy is expected to respond where legal liability exists and cases are being reviewed on a claim-by-claim basis. The Fletcher Construction Co Ltd is an insured party under these policies.
“Fletcher Building is working to determine the impact of the NZICC fire on the project’s delivery timeline, costs & cashflows, and any potential impact on the construction provisions announced in February 2018. The company confirms that based on information currently available it remains within these provisions.
The company expects to be in a position to provide a further update at its half-year results announcement in February 2020.”
Attribution: Fletcher & SkyCity releases.