Shangri-La launched a claim for £57m against Sisk in June following fit-out delays on its hotel in The Shard.

Sisk fired back with a £26.8m counter-claim just weeks later.

Sisk won the £40m fit out contract in early 2012 but the job started running behind schedule and in August 2013 Sisk was removed from the contract and replaced by Chorus.

The hotel was scheduled to open in May 2013 but finally opened 12 months later.

A statement from the contractor today said:  “John Sisk & Son Limited and Shangri-La Hotels PTE Limited wish to confirm that they have reached an amicable settlement to the claims and counterclaims recently issued in the Technology and Construction Court in London relating to the Shangri-La Hotel at The Shard.

“There are no admissions of fault or liability by either Party in the settlement reached.”