Burj Al Alam on track for 2012 completion

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Dubai's Burj Al Alam project had suffered from delays in payments from investors but was still on track for completion in 2012, according to director of projects for developerFortune Group.

Speaking to Arabian Business on Sunday Colonel Syed Muhammad Shahid admitted that the AED 5bn ($1.36bn) development had been affected by delayed installments of payment from clients funding the development.

However, the project, which will be the the world’s tallest commercial tower at 501 metres, was still on track for completion in three years time. An announcement on the main contractor for the development would be made in one and a half to two months, Shahid added.

Grocon, Besix, Samsung Engineering and Arabtec Construction were on the shortlist to be named the main contractor, he said.

“As far as the announcement of the main contractor is concerned it will take some time because for a project of such a magnitude it takes months to straighten out queries and clarifications before things take the final shape,” he said.

Speaking about the commercial construction sector in Dubai generally, Shahid said: “Keeping in view the prevailing financial situation everyone knows that clients are delaying the payment of installments because of which a slow progress in all matters may be expected.”

Middle East Foundations started construction work on the shoring and anchoring for the project five months ago, Shahid said.

The 108-storey structure, which has been designed by Nikken Sikkei in the shape of a crystal flower, will be located in the Business Bay area.

US-based Parsons Brinckerhoff has been named project manager for the scheme.

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Posted by: Pramod

I feel pity after reading investors responses. Do we have a local law to protect the investors moneyt? If the project could not complete or failure in delivery, how would they get money back?

Posted by: Maqsood Sheikh

I agree with the sentiments of Dr Jaffer Khan . The lack of communication from the developer to its customers is appalling to say the least. No information has been intimated to the investors about the development works and delays and how they intend to compensate for this inoordinate delay.This works negatively towards the devlopment and the developer Fortune Group. Secondly as per RERA all projects are supposed to come under the ESCROW law and also all projects sales need to be registered under the Interim Sales Register . Fortune Group the Developers of BurJ Al Alam have not been forthcoming in this regard and have shown a total lack transparency in their dealings . I sincerely hope that they can get their act together as I'm a firm believer , if Burj Al Alam is completed as advertised it will serve as an Icon in the Busniness Bay area and provide a prestige location to house the major business houses .

Posted by: sangita morjaria

The words expressed in this article have ben heard again and again, regarding contracts being awarded in a "couple of months time". This project was launched over three years ago and had they started it on time like they promised then they wouldnt be part of the finanicial crisis, the fact that a no of clients have paid 100% up front, I have paid several million dhs upfront and event eh people who have paid on instalment have probably paid 50% by now and i am sure all of these people would have paid a lot more had the project got off the ground. The fact the project has not started is WHY they have not collected anymore money. Every excuse you hear from them is absolute rubbish since you can never get any response from them in any shape or form, at anytime despite numerous attempts. This kind of thing should not be allowed and it would be very interesting to get their 100% confirmation that all the money collected from the customers can be accounted for in an escrow account!! If so this should be published and they should have no problems in giving their customers a copy.As the previous reader has stated a brilliant choice of words to buy them yet another 3 years at the customers expense. Please save these articles as i can assure you that the project will not be finished in 2012 if it gets off the ground at all.

Posted by: Dr Jaffer I Khan

I read your article with interest. Its easy for developers to say that they are awaiting payements, and in the light of the current financial crisis this may well be the case. However, they make no mention about compensation for those who HAVE paid. I myself have paid 100% up front to this developer ( albeit at a competetive price at the time) for delivery in 2009. All attempts to reach them and get a part refund have been futile. I just wish that they would spend a little more time on customer service. No one is expecting miracles but re assurance about their product is essential for the consumer. They simply lack this maturity.

Posted by: Zeeshan

Brilliant choice of words to buy time for another 3 years without having investors hounding them on the delays....

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