THE BUILDERS of the Pinnacle are suing the owners of the stalled £1bn skyscraper development for breach of contract and are claiming millions of pounds in unpaid fees.
According to documents filed at the High Court of Justice, Brookfield Construction UK, a subsidiary of the Canadian-owned contractor, is seeking to claw back payments for work undertaken under its £593m building contract for the City skyscraper.
The documents, seen by Building magazine, state that Brookfield is seeking to recoup £14.95m in unpaid fees from The Pinnacle No 1 Ltd – the special purpose vehicle that owns the project.
A second parallel claim for £15.58m was also made against parent companies The Pinnacle Holdings Ltd and The Pinnacle Ltd. Brookfield is also seeking interest accruing at £1,916 per day from 23 July 2012, bringing the total claim to almost £16m.
Work on the Kohn Pedersen Fox-designed Pinnacle tower – also known as the Helter Skelter – came to a grinding halt for a second time in January this year after the developer Arab Investments failed to secure sufficient tenants.
Brookfield declined to comment. Arab Investments could not be reached yesterday.