Conran sues for £18m over 'chaotic' hotel renovation

Sir Terence Conran is suing builders for £18m over the delayed and "chaotic" renovation of a hotel.

A High Court writ issued by Sir Terence claims John Laing, the construction company, mismanaged the £34m overhaul of the Grade-I listed Great Eastern Hotel next to Liverpool Street station in London.

The joint project between Conran Holdings and Wyndham International hotel group began in 1996. The brief was to give the Victorian-era hotel, which reopened in March 2000, a contemporary feel while preserving historical features.

But, according to the claim, the project ran into trouble "almost from day one" because of the need to redesign the roof to accommodate a rotunda.

The writ alleges Laing tried to cover up delays by allowing contractors on site before they were able to start their work. It also saysthe site was "in a state close to chaos, with traders working around each other in limited work areas".

A source close to the project told Construction News, a weekly publication for the building industry: "The relationship with the client deteriorated as it became clear that meeting the practical completion deadline was increasingly unlikely." The hotel, built during the industrial revolution, was restored with a contemporary interior to appeal to international City firms.

Sir Terence, who owns a string of restaurants in London including Quaglino's, paid special attention to the hotel's four restaurants, which include a brasserie and sushi bar. There is also a private members' club and a gym in what used to be a Masonic temple.

Sir Terence and Wyndham International are claiming £8m in lost revenue from the delays and £9m in subcontractors' costs. They are also claiming £1m in professional fees, plus costs. A spokesman for John Laing said the writ related to work by its former construction division, Laing Construction, sold to contractors O'Rourke in 2001. The Great Eastern was one of 13 contracts for which John Laing retained liability.