Management of a dispute concerning high-voltage network installation in the UAE
Our client, a locally based electrical infrastructure contractor was appointed by a UAE authority to supply and install approximately 300 kms of 132 KV cables in and around a UAE city. The contract was let to the contractor on the basis of the Authority’s standard terms and conditions for about AED 210m, with a construction period of 13 months.
Shortly after commencement of the works the employer issued a variation order breaking down the Contract into numerous sections with several different completion dates. This proposal by the employer was not supported by the contract and the dates were considered by the contractor to be unrealistic. The Contractor made its position known to the employer and refused to sign the VO.
The works ended up in delay due to issues of non-possession of major areas of the site and the employer unfairly applied liquidated damages against the contractor, putting it under extreme financial pressure and leading to a situation where it was unable to proceed with the works.
We were appointed by the contractor to advise upon the contractual position and assist in developing a strategy to bring the matter to a head and reach a resolution in the most economical manner possible.
The strategy is currently being implemented and the matter is on-going.