THE cost of the new Wembley Stadium project could rise by £75m as a result of the main contractor's dispute with engineering firm Cleveland Bridge, it has been claimed.

Australian firm Multiplex said recent estimates of a £48.6m discrepancy between construction costs and revenues would have to be revised upwards by more than 50 per cent.

The company's annual meeting, in Sydney, heard that the projected losses were largely due to its feud with the Darlington company.

The stadium, for which Cleveland Bridge built the showpiece arch feature, was initially expected to cost £757m. But Cleveland Bridge's workers walked off the site last August, as rows with Multiplex intensified.

Both companies then lodged claims in the Court of Technology and Construction, part of the High Court. The case is expected to be heard next year.

Multiplex has already had to pay nearly £5m to Cleveland Bridge after mediation.

Steel contractor Hollandia replaced Cleveland Bridge, but no agreement was reached on the upper limit of the cost of steel and labour to Multiplex.

Multiplex chairman Allan McDonald told shareholders at the meeting: "Whilst the negotiations are at an advanced stage, they remain incomplete, and it is possible Multiplex will not conclude a mutually acceptable agreement with Hollandia.

"If the negotiations are completed, the agreement will ensure that the costs in connection with its sub-contract works package will be capped at a maximum value."