Dubai-based development company, Shaikh Holdings, has awarded Arabtec Construction the US $112 million (AED412 million) main construction contract for its Sanctuary Falls villa development in Jumeirah Golf Estates.
The project, which has a total value of $231.5 million, was launched in July last year.
The community features a collection of 96 resort-style villas overlooking the Earth golf course, designed by Greg Norman.
The villas have been designed by DSA Architects.
The contract involves the construction of 96 villas, which will begin in April, and is expected to be completed by the first quarter of 2010. But with spiralling material and labour costs, contractors in the industry have previously called for doing away with lumpsum contracts and introducing cost-plus ones.
"All we can do is pray that material prices don't go up," said Thomas Barry, CEO, Arabtec Construction. "And we haven't signed a cost-plus contract either. It's a lump sum contract so all we can do is hope that material costs don't go beyond our contract value.
But Imran Shaikh, CEO, Shaikh Holdings believes the lump-sum contract works well for both the developer and the contractor.
"We have taken our time to research and appoint the best quality contractors and subcontractors as our partners for the Sanctuary Falls development," said Shaikh. "And I think the lump-sum contract works well for us and the contractor. They have included their cost expectations and we've agreed to their terms amicably.
Sometimes it's best to have things drawn out clearly in the very beginning. That way we know where we stand and what our capabilities and limitations are.
Shaikh added that one of the reasons Arabtec was chosen for the project was due to its demonstrated commitment to excellence and in-depth experience with projects such as villas in Emirates Hills and the world's tallest tower, the Burj Dubai.
Riad Kamal, chairman for Arabtec Construction, said that the villas would be built to the highest construction standards offering the latest building materials and efficiency systems.
"There is no contractor in the market at the moment who compares with us when it comes to building luxury villa developments and so we can guarantee the best results," said Kamal.
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