CLEVELAND BRIDGE has pulled out of its contract to fabricate steel for the Wembley stadium roof after falling out with main contractor Multiplex.
The row broke out over payments for work on the project's signature arch.
Cleveland also issued a writ against Multiplex this week for breach of contract.
The specialist steel subcontractor was sacked from onsite steel erection by Multiplex last month and replaced by Dutch subcontractor Hollandia (NCE 8 July).
It retained the contract to supply prefabricated steel for the stadium roof.
Sources close to Cleveland said that talks over claims arising from unforeseen problems assembling Wembley's signature steel lattice tube arch had broken down.
Cleveland Bridge stated it 'now has no faith in Multiplex honouring its commitments and paying the sums due'.
It is thought that extra work resulting from late design changes and unforeseen problems in welding the arch pushed Cleveland Bridge's £60M arch contract £10M over budget.
Cleveland Bridge and Multiplex signed a agreement to settle the difference in June. But Cleveland's writ now accuses Multiplex of reneging on the deal.
Multiplex refused to comment.