24.02.2016

Steiner AG brings lawsuit before Commercial Court of Zurich

Additional construction costs of CHF 58.5 million due to serious planning errors made on the part of the client

Steiner AG has initiated legal proceedings against PSP Properties AG and Löwenbräu-Kunst AG, the Löwenbräu project client, amounting to a total of CHF 58.5 million. PSP had previously rejected Steiner's offer of entering into unconditional negotiations to achieve a settlement. The additional expenses are the result of serious planning errors made by the client. Steiner's position is supported by external opinions.

On behalf of the client, Steiner AG has been renovating and rebuilding the Löwenbräu site in 14 interrelated and complex sub-projects since mid-2010. Numerous shortcomings in the planning documentation which it was not possible for Steiner to detect in the submission phase, resulted in substantial additional costs and delays during construction with considerable financial consequences for Steiner AG.

Despite a 48-month preparation and planning period by the renowned client and its team of architects and planners, Steiner repeatedly had to make corrections to the planning documentation during construction. It only emerged during the actual construction work that the tender procedure, involving over 10,000 individual items in the list of specifications, was seriously defective, incomplete or contradictory. The sources of the errors and their significant consequences for completion of the construction project were examined in detail by Steiner. Steiner's analyses and conclusions are borne out by external opinions.

Steiner initially tried to address the numerous problems that arose by submitting claims. However, the client has repudiated the bulk of Steiner's subsequent claims to date and thus rejected the latter's efforts to reach an amicable solution. An initial claim in the double-digit million range was submitted in December 2013. In a subsequent step, Steiner proposed negotiations aimed at achieving a settlement. This offer of talks was also rejected by the client. After all Steiner’s attempts at achieving an amicable settlement had failed, Steiner had no other option than to take legal action to press its claims.

To meet its contractual obligations towards the client and complete the project, Steiner has incurred substantial additional expenses. Moreover, Steiner has settled the invoices of all subcontractors on the construction project that were undisputed. The project was handed over to the client in December 2015 
  
 
Steiner AG 
Steiner AG is one of the leading project developers and general / total contractors (GC/TC) in Switzerland, offering comprehensive services in the fields of new construction, refurbishment and real estate development. The company, which was established in 1915, has constructed more than 1200 residential construction projects, 540 commercial properties, 45 hotels and 150 infrastructure facilities such as universities, schools, hospitals, prisons and retirement homes. Steiner AG has its headquarters in Zurich and is represented by branches in Basel, Berne, Geneva, Tolochenaz, Lucerne and St. Gallen.

Information for media
Claude Sulser, Head HR & Corporate Communications, Steiner AG
Tel.: +41 58 445 20 00, claude.sulseranti spam bot@steineranti spam bot.ch 

Disclaimer
The expectations expressed in this media release are based on assumptions. Actual results may diverge from these expectations. This media release is available in German, French and English. The German version is authoritative.

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