SkyCity suing Fletchers for $330m over NZICC delays

6th June 2025 By Paul Yandall | paul@propertyticker.co.nz | @propertyticker

SkyCity Entertainment Group is taking legal action against contractor Fletchers over the New Zealand International Convention Centre, seeking more than $330m in damages.

The casino and hotel operator said this morning that it will file legal proceedings against Fletcher Building Limited and subsidiary The Fletcher Construction Company Limited for damages incurred by the delays that have plagued the project.

The delays included those caused by the large fire at the building site in central Auckland in October 2019.

“The delivery of the NZICC by Fletchers is now nearly six-and-a-half years behind the contractually agreed delivery date of January 2019,” SkyCity told the NZX.

“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.

“SkyCity claims that it is entitled under the contract to liquidated damages of over $330m from Fletchers.”

SkyCity said it has attempted to resolve its claims with Fletchers but has been unable to do so.

“The NZICC was originally scheduled to take approximately three years to build, and it has now taken almost ten,” SkyCity chief executive Jason Walbridge said.

SkyCity was confident of opening the NZICC in February 2026 and expected the building to be handed over in the second half of this year.

“We are ramping up for opening with recruitment for key positions already underway and exciting plans to celebrate finally being able to open our doors and welcome visitors to enjoy the world class experience we will have on offer,” Walbridge said.

Fletchers said it would “vigorously defend itself” against SkyCity’s claim.

“The company notes that Fletcher Construction has already paid significant liquidated damages to SkyCity in relation to the delays in delivering the NZICC in accordance with the building works contract,” Fletcher Building said. 

“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. 

“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.”

The contractor said it has completed the construction of the NZICC and was focused on remediating defects, completing the commissioning processes, and securing the required Auckland Council sign-offs. 

“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. 

“The net costs to complete the NZICC have been re-assessed, including taking into account the costs and resources estimated to be required for the project’s final stages, with the result that Fletcher Building expects to record a further provision of circa $12m – $15m, in addition to provisions previously reported in February 2024.” 

That provision does not include any costs associated with SkyCity’s claim announced today. 

“The group also continues to pursue recoveries under the NZICC Third Party Liability (TPL) insurance policy of more than $100m and has brought legal action against the roofing membrane subcontractors in relation to the fire, which will commence shortly in the High Court,” Fletcher Building said.

SkyCity has committed around $750m to develop the NZICC, an adjacent laneway, over 1,250 car parking spaces, and its new 303-room, 5-star, Horizon by SkyCity hotel, which opened last year.