Some UK contractors 'snub Dubai' over payment fears

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CONTRACT WOES: Many UK companies are still owed money by Dubai developers for work completed, it was reported on Thursday. (Getty Images)

Some UK contractors are turning down invitations to chase work in Dubai because of continuing doubts over whether they will be paid on time, it was reported on Thursday.

According to Nelson Ogunshakin, the chief executive of the UK Association for Consultancy and Engineering (ACE), a large number of UK firms significant number of UK firms are still owed money by struggling developers in the emirate, UAE daily The National reported.

In July, the UK government reiterated its call for contractors to be paid by Dubai developers – and said it was "continuing to monitor the situation".

Almost £400m ($660m) is reportedly owed to UK consultants and engineers in unpaid fees from work undertaken in the UAE, ACE said in April.

“A substantial part of that is outstanding,” Ogunshakin told the paper. “There’s a dialogue going on between various government departments and clients, with a view to easing the process and ensuring payments come through.”

He added that firms which had been paid were forced to take a discount of up to 30 percent as developers braced for further losses.

Foreign contractors operating in Dubai continue to report payment problems despite moves to ease liquidity through a $20bn bond programme, the paper added.

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READERS' COMMENTS

UK Contractors snub Dubai
Posted by Brian Heighes, Gold Coast, Australia on Friday 30 October 2009 at 02:15 UAE time


The with holding of fees and payments at all levels is a global problem that retards the progress of the construction industry worldwide, leading to lower standards of design and workmanship. Corners get cut; skills get short changed and an attitude of mistrust rather than partnership and pride exists.

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