Bahraini firm wins $3.76m payout
Manama, April 2, 2012
Bahrain Foundation Construction Company (BFCC) has won a BD1.42 million ($3.76 million) payout after filing a case against Korean firm Sungwon Corporation.
The company has also been awarded BD45,500 in costs by the Bahrain Chamber for Dispute Resolution, according to lawyers representing the company.
Thirteen other companies also seeking payouts are hoping for judgements in the coming weeks, said Althukair and Almoayed Litigators and Counsels managing partner Aymen Almoayed.
The firms were hired by Sungwon as subcontractors on the BD50 million Isa Town Interchange project.
However, the foreign firm was booted off the project by the Works Ministry following major delays and later filed for bankruptcy in South Korea.
The Bahraini companies claim they are together owed more than BD5 million in outstanding payments. In September last year, the Urgent Matters Court ordered the Works Ministry not to transfer any funds due to Sungwon until claims of local contractors had been settled.
It followed allegations of "negotiations and manoeuvring" between Sungwon Corporation, the ministry and contractors.
The ruling meant the firms would have to be paid outstanding dues before the ministry settled any financial dispute with Sungwon.
"This latest verdict has come in as a major morale-booster for the companies involved," said Almoayed. "We hope the rest of the cases are settled soon and the judgements are executed."
The dispute between the contractors and the ministry began after Sungwon's contract was terminated by the ministry in February 2010.
The intersection project, which started in August 2008, was initially supposed to be completed in July 2010.
However, the Works Ministry pulled the plug on Sungwon and awarded the contract to Bahraini company Nass Corporation, which completed the work in August last year after being selected through a tender process. – TradeArabia News Service
More Construction & Real Estate Stories
- Asian skyscraper prices tower over rest of the world
- Tamleek opens new office in Dubai
- $29m allocated for Bahrain drainage projects
- Indian group plans $300m Bahrain Bay investment
- Drake and Scull awards key supply contract
- FCC wins $702m Doha metro line contract
- SPF Realty sees Dubai project success
- Abu Dhabi set for big property show
- Aldar working on $1.5bn UAE housing projects
- Gulf Finance House to start $3bn Tunisia project
- Abu Dhabi to see 10pc surge in new homes
- Saudi construction sector booming on new contracts
- Emaar offers 330 apartments in MBR City
- Dubai Design District sees big demand
- HUGE DEAL: Arabtec inks $40bn Egypt housing project
- Galfar ex-CEO gets 15 years' jail over bribes
- $32m BFH car park work underway
- Bahrain awards $5.8m project tenders
- Spinneys to set up distribution centre at Kizad
- Dubai unveils $300m hitech 'green' city project
- Deyaar plans $245m Dubai complex
- IFA unveils $272m Dubai mixed-use project
- CBRE tops Fortune’s most admired firms list
- Kuwait's real estate sales hit $1.1bn in Jan
- Dubai RTA awards $27m roads contract
- Work to start on Bahrain beach project
- Damac launches luxury apartments at Expo site
- Kuwaitis top GCC property buyers in Oman
- Rubber World to showcase at Big 5 Saudi
- Tool to help create effective property listings