Depa in dispute over Doha airport contracts

  • Share via facebook
  • Tweet this
  • Bookmark and Share
An artist's impression of the New Doha International Airport.

An artist's impression of the New Doha International Airport.

Dubai-based interior contracting company Depa said on Tuesday it was in dispute with Doha International Airport over its deal to fit-out the new aviation hub, which is due to open in December.

Depa said in a statement that its lawyers were in discussions with officials at the airport after its joint venture Lindner Depa had its contract performance bond and advance payment guarantee pulled.

It said the two were worth a total of AED177m.

The performance bond and advance payment guarantee were put in place due to Lindner Depa's refusal to accept new non-favourable contract terms and conditions, including dropping all extension-of-time costs and acceleration costs.

Lindner Depa said it was denied full access to the project site to perform its contract scope of work for the first nine months of a sixteen-month project.

"As a result of the delay, Lindner Depa has not been able to start all of its interior contracting work on site as planned and consequently, would not be able to meet its original contract completion date," the statement added

The contract, worth about AED900m, comprised the interior fit-out of all 17 lounges at the New Doha International Airport.

The statement added: "The contract has not been terminated yet. The company is in discussions with its lawyers in order to assess the situation and consider the way forward."

The New Doha International Airport project represented the largest project in Depa's backlog, but it is still working on over 200 projects across the Middle East, Africa and South East Asia.

Last month, Akbar Al Baker, CEO of Qatar Airways, said Qatar’s new international airport will officially open on December 12 after costs to build the facility increased by $1bn.

In April, Al Baker said the first phase of the New Doha International Airport (NDIA) is to hire 8,000 employees in the run-up to its opening later this year.

The upgraded facility, which could be one of the region's major aviation hubs, has already hired 3,000 staff and is in the process of recruiting a further 5,000 in time for the launch, Al Baker said.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: K Kumar

In most contracts , delays are always blamed on sub contractors ( and contractors ) . Rarely does anyone look into the delay in approval of drawings by consultants - or delay in availability of the site to perform the designated works.
Unfortunately - there is no way a sub-contractor can fight back - and still do the job - so they always end up losing !

Posted by: W

Well done Depa, finally someone stood up

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Slumping oil won't derail $500bn Gulf infrastructure plan

Slumping oil won't derail $500bn Gulf infrastructure plan

Rich GCC nations will deploy huge reserves to maintain a breakneck...

Revealed: GCC's top 10 developers

Revealed: GCC's top 10 developers

The biggest players behind many of the region's most ambitious...

Mall talk

Mall talk

Plans for Dubai’s Mall of the World have made headlines all over...

Most Discussed