Rodamco Projekt AB files request for arbitration for liquidated damages related to the dispute with Peab Sverige AB over the construction of Mall of Scandinavia

Rodamco Projekt AB (RPAB) has filed for arbitration proceedings against Peab Sverige AB (Peab) for liquidated damages in the dispute concerning a turnkey contract for the construction of Mall of Scandinavia. The estimated total claim has reached SEK 1.1 billion as of today¹, which includes the original claim of SEK 617 million plus interest on the claim of SEK 490 million as from 2016.

This follows the ruling from the Svea Court of Appeal on May 28, 2025, which partially annulled the arbitration tribunal’s award issued in 2023, acknowledging certain procedural failings in the award and thereby allowing RPAB to pursue arbitration for liquidated damages.

RPAB is the sole contractual counterparty to Peab as indicated in the Svea Court of Appeal press release dated May 28, 2025 (link below) and has been pursuing vigorously a fair and amicable solution to the outstanding balances.

For more details and background about the court’s decision, including the correctly identified parties, please refer to the Svea Court of Appeal’s announcement at: Svea hovrätt upphäver en del av en skiljedom meddelad i en tvist om bygget av gallerian Mall of Scandinavia - Sveriges Domstolar 

Rodamco Projekt AB’s initial communication of June 2 is available at: https://news.cision.com/rodamco-projekt-ab/r/statement-on-the-svea-court-of-appeal-s-ruling-in-the-dispute-between-rodamco-projekt-ab-and-peab-ov,c4158061

Background information:

In 2011 Rodamco Projekt AB (RPAB) entered a turnkey contract with Peab Sverige AB (Peab) for its investment in Mall of Scandinavia, with a fixed price of SEK 3.6 billion. 

When entering the contract, Peab’s only counterparty in the construction contract was RPAB, and both companies carefully considered and agreed to what risks and financial exposure could be transferred to other entities at that time.

During construction, Peab replaced its entire project management team for Mall of Scandinavia with resulting delays after corruption was uncovered in 2013 within its project management team. 

Final inspection was approved 407 days after the contracted opening date and the destination opened in November 2015.

For the project, RPAB paid Peab SEK 3.6 billion for contracted works and approved change orders, with an additional sum being withheld temporarily due to RPAB’s own claims against Peab for delays, damages and outstanding defective works.

Despite these payments, the clear terms of the contract and the limited amounts outstanding between the two parties, after opening Peab demanded additional compensation amounting to SEK 2.1 billion.

Peab commenced arbitration in 2017 and, despite attempts by RPAB to settle with Peab at the request of the courts, an award was announced on June 30, 2023.

Out of the three arbitrators in the tribunal who made the judgment, only two were in favour of the award. The third arbitrator dissented from very significant parts of the June 2023 award.

In his dissenting opinion, he points out serious errors in the award, including that the decision in several parts contradicts the separate arbitration award from March 2021, as well as provisions in the Arbitration Act.
 

For more information, please contact rpab@kekstcnc.com
 

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