M&E contractor TB Worrall has taken over crucial Wembley electrical work from troubled contractor Phoenix, in a move that has left the latter firm facing huge financial penalties.
Main contractor Multiplex has hired TB Worrall, which was already working on other areas of the £757m stadium, to carry out work halted by Phoenix two weeks ago, after its main labour provider BMS walked off the site in a row over payment.
It is understood Worrall is paying its workers almost £200 a day to carry out the work, making them among the highest paid electrical workers in the country.
Phoenix, which has needed financial concessions from Multiplex to cope with its work, is now facing huge contra-charges as a result of the switch. Under the terms of a notice served by Multiplex last week, the main contractor is entitled to recoup the costs of hiring Worrall from Phoenix, placing Phoenix's finances under further strain.
A Multiplex spokesperson said: "The option was there for Phoenix to complete their works in accordance with the subcontract, but they have not done so. We've had to proceed with the contract using TB Worrall."
Worrall is understood to be paying workers £18 an hour to carry out the work in 10.5 hour shifts, £4.50 an hour higher than the minimum rate agreed by the Joint Industry Board. The workers are also being offered bonuses under a deal that could see M&E prices rise if it is replicated on other sites.
Phoenix is still carrying out some work on the project under the terms of its original contract.