Contractor at centre of building collapse revealed

COLLAPSE DRAMA: Investigations continue into the building collapse in Deira on Sunday. (ITP Images)

Sharjah-based Al Hazza Building Contracting Company was employed on the collapsed building in Dubai, sources in the firm disclosed to Arabian Business on Monday.

Speaking on condition of anonymity, two employees of Al Hazza confirmed to Arabian Business that the company was the contractor on the eight-storey project which collapsed on Sunday in Deira, one of Dubai’s most densely populated areas.

On Monday, not-for-profit organisation Build Safe UAE called for harsher penalties to be slapped on construction companies violating health and safety regulations in Dubai.

The group, which promotes health, safety and welfare conditions in the construction industry, is urging a full investigation into the accident.

Arabian Business has also established that the building was insured for a contract value of AED70m with National General Insurance (NGI).

A source from NGI’s engineering department, who did not wish to be named, said Al Hazza had reported the incident to NGI, which had appointed a loss investigation company to look into all aspects of the claim.

Preliminary findings from the investigation, which will assess the cost of the damage, are expected to be presented to NGI in around a week to 10 days.

NGI would only be liable for AED500,000, with the remainder of any potential claim covered by the reinsurer, the source added.

“It’s too early to comment on a claim. We have full protection from our reinsurers. Ultimate liability that NGI has to pay out of its own pocket will not be more AED500,000,” the source said.

Earlier on Monday the head of building inspections at Dubai Municipality said a ‘structural problem’ had caused the building to fall down.

No injuries have been reported.

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