29 October 2004
Contractors have paid a 'significant' settlement to the London Borough of Hackney for time and cost overruns incurred in the building of a flagship leisure centre but have not admitted liability.
Hackney has been involved in litigation against the architects and building contractors involved in the construction of the Clissold Leisure Centre. Safety problems led to the building's closure in 2003, 20 months after it opened.
Hackney's mayor, Jules Pipe, said: 'The terms… require no disclosure of detail, however… the terms of settlement include a payment of a significant sum to Hackney without any admissions as to liability.'
A large proportion of the settlement is understood to have been paid by architects Hodder Associates. They declined to comment.
A second phase of litigation regarding defects with the building is due to come before the High Court in November.
A council spokeswoman told Public Finance that experts had spent the summer assessing the building's problems. 'Our priority is to get the centre open as soon as possible,' she said.
Hackney's financial management suffered a new blow when it emerged that five senior teachers have been suspended from a school as part of an investigation into almost £1m in missing funds.
At the end of 2003/04, Homerton College of Technology reported a deficit of £975,000. The Learning Trust, which runs education services in Hackney, said three deputy heads and two assistant heads had been temporarily removed from their posts.
Learning Trust chief executive Alan Wood said: 'We will take legal action if necessary.'
PFoct2004
