Linder Depa’s Doha International Airport contract terminated
Joint venture has performance bond and advance payment guarantee pulled by client due to its refusal to accept new non-favourable contract terms and conditions
Depa Limited, the Dubai based interior fit out contractor, announced on Sunday that its joint venture Linder Depa has had its contract with New Doha International Airport terminated.
The news of this termination comes after an announcement on June 20 that said that the joint venture’s performance bond and advance payment guarantee were pulled due to its refusal to accept new non-favourable contract terms and conditions.
The contract performance bond and advanced payment guarantee were worth $26.13m and $22.05m respectively.
Set up in conjunction with Germany’s Linder AG, the joint venture was told that it had to drop all extension of time costs and acceleration costs. In addition, it was denied full access to the project site to perform its contract scope of work for the first nine months of the 16 month project.
As a result of this, the company has not been 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, Depa Limited said.
It added that it was in discussions with its lawyers in order to assess the situation and consider its options.
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.
The Dubai firm 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.
