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Consortium deal ends Chek Lap Kok claims run


HONG KONG'S airport authority is believed to have paid the Amec-led consortium which built Chek Lap Kok airport between HK$2bn ($250M) and $358bn as a final settlement for claims on the project.

Details of the deal are confidential, but insiders said BCJ, which also includes Balfour Beatty, Maeda Corporation and China State Construction Engineering Corporation, won the settlement after lodging claims worth around $410bn.

The agreement has pushed up the final construction cost of the terminal by more than 30% to close to $2.2bn, compared to the original $1.6bn for foundations, superstructure and M&E works.

'BCJ had to swallow a discount on the amount it was originally claiming. But it had a choice of either reaching a deal or embarking on costly and timeconsuming legal action against the Airport Authority, ' one source said.

BCJ's deal ends a long running claims saga that has marred the otherwise successful operation of the airport. The joint venture is the last of the six main airport construction consortia with outstanding claims to settle since March. These include Costain, which negotiated a deal in the spring for extra costs on its airport roads contract which finished three years ago.

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