The cancellation follow the joint venture having its AED96m contract performance bond and AED81m advance payment guarantee for the work pulled. Depa says the performance bond and advance payment guarantee encashment is due to the joint venture’s refusal to accept new non-favourable contract terms and conditions, including dropping all extension-of-time costs and acceleration costs. It also says it has been denied full access to the project site to perform its contract scope of work for the first nine months of the 16-month contract.
The contract comprised the interior fit-out of all 17 lounges at the New Doha International Airport.
The NDIA contract was Depa’s largest. The company says it still has a backlog of more than 200 projects across the Middle East, Africa and Southeast Asia totalling more than AED3bn.
It is not the first time a contractor has been terminated on the NDIA project. China State Construction Engineering Corporation had contracts for work on three construction packages terminated in October 2010. Athens-based Consolidated Contractors Company (CCC) was awarded the contracts in March 2011.