The cost of building the Mall of Scandinavia got out of control due to delays and additional work.
Now building entrepreneur Peab negotiates with Unibail-Rodamco on who should pay.
With the delay of the opening of the giant mall, it was expected and announced that the construction would cost more than the original estimate – and that it would mainly affect construction company Peab.
Now Peab announces it’s being forced to write down the value of the project with 800 million SEK.
But Peab wants some of the money back, and will take the fight about changes and additional work during the construction period.
“It is a complicated contract and there have been major changes during the contracted time. All changes are not part of the contract, ” says Peab’s CFO Niclas Winkvist to the Swedish newspaper Svenska Dagbladet.
He expects that the discussions will take a long time.
According to analysts, Peab has failed in the contract writing and not received a written agreement on additional work.