Liquidated construction firm in row with Fletchers

Christine Nikiel

Friday 14th November 2003

Auckland firm Link Construction, the major subcontractor to Fletcher Construction during the building of the $200 million Auckland District Hospital, is now battling Fletchers in a dispute over its bills.

Link, placed in liquidation this week owing about $2 million to 230-240 creditors, claims Fletchers deducted amounts from the agreed contract price after "re-measuring" work done by Link.

Link, which had an $8 million contract for its part in building the hospital, is also disputing Fletchers' deduction of the cost of extra labourers brought in by Link to help it meet building deadlines.

Link is also challenging retention debts of $100,000 money deducted by Fletchers for maintenance and rectification. McDonald said there were instances where company and client records showed substantial differences.

Creditors could be in for a long wait to settle their disputes.

Liqidator Graeme McDonald, of McDonald Vague, said the case was complex and had all the hallmarks of taking up to a year to settle the liquidation.

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