Penalty Clauses Too Expensive

Last updated : 10 June 2005 By Covsupport

Arena builders Laing O'Rourke have escaped having to play stiff penalty clauses after it was revealed that Coventry City Council felt that they were too costly.

Conservative Council Leader Ken Taylor said: "if great whacking penalties were included in the contract most firms would simply bump up their prices." Adding that it was a risk that the Council had to consider taking, before he came out with: "Yes,we're slightly behind. I don't think the delay in any way tarnishes it,because I feel we are as close to the date as we ever expected it to be,realistically."

City supporting Labour Councillor John Mutton told the CET: It's quite clear they don't particularly care about the impact on future tenants of the Arena. "In my opinion, they could have caught up this week by bringing in additional staff,but that would have cost them some money."