Saturday 30 August 2014
 
»
 
»
Story

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




Tags: Sungwon | Korea | Manama | Payout | Bahrain Foundation Construction Company | BFCC |

More Construction & Real Estate Stories

calendarCalendar of Events

Ads