Fixed Price Deal For The Shard

The super tall Renzo Piano designed skyscraper had seen a battle between Mace and Laing O' Rourke who vied over a contract to construct it before Laing O' Rourke decided that the tender was not for them, presumably due to fears of the costs spiraling out of control. The Mace deal will reportedly be worth at least £350 million and thanks to the fixed price nature guarantees that the developer Teighmore, a collection of Sellar Properties, CLS, and the Halabi Family Trust, will not have to worry about cost overruns affecting them negatively as these will be shouldered by the contractor. This should prove instrumental in putting another piece in the proverbial jigsaw that can help realize the project. The rumour-mill keeps grinding about the Halabi Family Trust offloading their share to a middle-eastern investor who was reportedly worried that the bottom line of the scheme could change as construction progressed. Fixed contracts have proven popular with skyscraper construction - Multiplex has signed a similar deal to build the Bishopsgate Tower in the City of London despite having been badly stung over a similar agreement that saw them take a massive loss in building Wembley Stadium. The sale of their share is driven partly by the collapse of relations between the Halabis and their fellow partners over management costs associated with the project meaning that CLS and Sellar Properties no longer want to do business with them. Once this is secured then all should be set for the unnamed investor buying out the Halabis and injecting enough capital into the project for it to finally be built. Currently funding has been secured only for the buyout of PWC's lease who occupied Southwark Towers, and the very slow demolition of that building to make way for London Bridge Tower.