The organisation behind a new cinema and music venue in Shetland has said it will not defend itself against legal action from the contractor.

DITT, a Shetland-based construction company which built Lerwick's new arts centre, Mareel, has begun legal action against Shetland Arts in a row over how to interpret clauses in its contract.

And Shetland Arts told the BBC's Radio Shetland that it had accepted it would have to hand over the £200,000 sum that the contractor is seeking.

The contract issue has already been considered by an independent adjudicator as part of a disputes resolution procedure agreed between the two sides.

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DITT said it was waiting to have the most recent developments confirmed by its lawyers.

It is still possible that there could be an entirely separate court case over allegations that changes to the design of the building led to delays and extra costs.

The sums in dispute if those issues ever come to court could be up to £1m.

Mareel should have opened in the spring of 2011.

But it finally opened at the end of August, after a string of complications over events that had been scheduled to take place in the new building and had to be transferred elsewhere at the last minute.

The name of the venue comes from a Shetland word meaning a shining phospherescence which appears on the sea, something which is reflected in the silver cladding which covers the building.

Pictured at the start of construction are: Roy Leask, Director, DITT; Gwylim Gibbons, Director, Shetland Arts Trust; Sandy Cluness, Convenor, Shetland Islands Council, Kathy Hubbard, Assistant Director, Shetland Arts Trust; Peter Tait, Director, DITT; Rick Nickerson, Trustee, Shetland Arts Trust; Gibbie Irvine, Managing Director, DITT; and in the digger, Tom Johnston, DITT.

(NE)