Key lieutenant and BGC general manager Gerry Forde will depart the company as building magnate Len Buckeridge seeks to reassert his authority over his company after a bout of ill health.
Mr Buckeridge is also understood to have let go some key site managers and is looking for a new occupational health and safety manager after the recent resignation of Paul Smedley.
A company source, who did not want to be named, would not detail the exact reasons but confirmed "BGC and Gerry were having discussions" about Mr Forde's departure. "As Len's health has returned and he has reasserted his control over the company, he has had a falling out with Gerry," the source said.
The Mr Forde had been at loggerheads with the State Government about the Arena and cost-overrun claims. BGC is facing penalties of $45,000 a day if it does not complete the indoor stadium by July next year but has lodged a counter claim of $53 million because of Government design-related delays at the troubled venue. It is currently budgeted at $483 million and is not expected to be completed before April 2012.
Mr Forde was responsible for overseeing major projects such as the $500 million Perth Arena. He could not be contacted yesterday.
Separately, BCG lawyer Michael Hotchkin said it was considering suing the State Government for $1 million in costs incurred in the bungled $160 million tender for new PathWest and cancer centres at Sir Charles Gairdner Hospital. He said BGC, which was awarded the tender twice, had to drop its second-round price to stop bidders undercutting its bid.