Multiplex is planning to sue Wembley National Stadium for �150 million.
Preliminary legal action could begin against the client by the autumn with a full claim launched next year.
Multiplex is understood to be willing to accept �80 million in an out-of-court settlement but realistically believes it will have to go to court to recover the cash it claims to be owed on the job.
Legal action will see the contractor claim up to �150 million in compensation for a host of design changes that Multiplex says cost it months of delays and have contributed to losses of �183 million.
A Multiplex spokesman told Construction News: �It is our belief that we have entitlements to significant recoveries with regard to our design and build contract for Wembley Stadium.�
The news comes as the relationship between the Australian builder and its client hit rock bottom. Multiplex was incensed by comments made by WNSL chief executive Michael Cunnah last Friday blaming Multiplex for the stadium's delay.
WNSL, which is a subsidiary of the FA, confirmed last week that no sporting fixtures will be held at Wembley until next year. A number of pop concerts scheduled for later this summer � including gigs by the Rolling Stones and Robbie Williams � have also been cancelled.
Multiplex first indicated it would take action last Friday when it told the Australian Stock Exchange it believed it was entitled to a contract completion extension of September 2006 at least.
It added: �Notwithstanding Multiplex's belief it has until at least September to complete, Multiplex is targeting substantial completion by the end of June.�
But Multiplex claims the real extension figure should be 78 weeks because WNSL has made nearly 600 design changes.
If it decided to stick to this assessment, the stadium would be finally completed in July 2007.
In evidence Multiplex will use a deal it and WNSL agreed last December under which, it claims, the stadium operator agreed to pay the firm an extra �26 million to offset some of the costs of its building programme, which had been accelerated to meet its revised deadline of March 31.
Multiplex will add that WNSL had also agreed to a time extension on its contract until the middle of May.
But the deal was pulled by WNSL's banks in January, which insisted a clause be inserted preventing Multiplex from making further claims for damages in the future.
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