Managing the Legal Environment: Case Study

Multiplex and Wembley stadium.

The basic facts and account of the project and the issues that arose can be found at this location:

Article- Multiplex faces the music By Kate Askew and Carolyn Cummins

There is also other information available - and some will be loaded into moodle (although you can find other information on this case in a variety of locations).

Other facts relevant to the discussion and analysis.
- The contract had Multiplex agreeing to take responsibility for construction of the stadium for a fixed maximum of £356m.
- The project was 18 months overdue and massively over budget (est in excess of £900m).
- Death, danger and damage caused additional delays and uncertainty.
- Legal action was taken both by and against Multiplex - principally involving Mott MacDonald and Cleveland Bridge (but not only).
- The contract included a penalty clause of £14000/day.
- £120m in lottery funding was granted for the purpose.
- A range of events and competitions (including the FA Cup final) - 12 in all - had to be relocated to other venues during 2006.

Questions:

1. What were the principal issues that arose from the contracts to which Multiplex was a party? How were these resolved (or not)?

2. What were the direct and indirect impacts for Multiplex of these issues and consequences?

3. How did Multiplex attempt to minimise these impacts? How successful were those attempts?

4. What procedures and safeguards could Multiplex have put into place to minimise or avoid the issues that arose?

This portfolio, built up over the course is your opportunity to show me, and prove to yourselves, how you have expanded your knowledge and understanding of issues and strategies around legal risk management. You can submit this in either a printed or electronic format. As a minimum it should include:

- Information on the research/referencing workshop (what you found, problems you might have had finding material and a bibliography of the references you have collected in your refworks account).
- Your reflections and comments on your case study and the research you conducted outside what was provided as part of the case study itself.
- Your analysis and conclusions on the other case studies.
- Your reflections on what you have found and read/analysed on legal risk, rules and management.