Unacceptable changes to contract terms and conditions causes luxury interior fit out contractor to consult its lawyers over the way forward in relation to the $245m project
Depa Limited, an interior contracting company listed on Nasdaq Dubai, announced on Tuesday that its joint venture company has had its contract performance bond worth $26.13m and an advance payment guarantee worth $22.05m with Doha International Airport pulled.
Set up in conjunction with Germany’s Linder AG, the joint venture, Linder Depa, had the bond and payment pulled because of its refusal to accept new, non-favourable contract terms and conditions.
These included dropping all extension of time costs and acceleration costs, after being denied full access to the project site to perform its contract scope of work for the first nine months of the 16 month project, the company said in a statement.
Because of this delay, Linder Depa said that it had not been able to start all of its interior contracting work on site, as planned. Consequently, it said it would not be able to meet its original contract completion date.
Originally worth $245m, the contract comprised the interior fit out of all 17 lounges at the New Doha International Airport, the statement said.
Although the contract has not been terminated yet, Depa is in discussions with its lawyers in order to assess the situation and consider the way forward.
While the New Doha International Airport was the biggest project in Depa’s portfolio, the luxury fit out contractor said that it was still working on more than 200 projects across the Middle East, Africa and South East Asia. This brought its total portfolio value up to $816.7m in total.
Depa operates principally in the luxury fit out industry, and its main areas of business cover luxury hotels, infrastructure and public sector amenities such as hospitals and airports, high-end residential properties and retail outlets.