Developer ‘locked out’ of project

CROESUS HOLDINGS FINDS GATES SHUT AT TWO DH100M PROJECTS

Adeveloper in Dubai has been “locked out” out of its two completed projects, after a dispute escalated with its contractor related to costs.

Construction industry sources confirmed that the entrance to the two projects — both low-rise buildings in Majan — were “sealed” over the last week. The projects, valued at Dh100 million combined, are complete.

This is the latest in a series of disputes between developers and construction industry players, and many independent sources have warned that, left unchecked, this would have grave consequences on the smooth functioning of two systemically vital sectors.

‘No issues in the past’

In the latest dispute, the developer involved is Croesus Holdings — “We have never had any issues with the contractor [Dubai Walls Contracting] that have not been amicably resolved,” said Rajesh Bhandari, CFO at Croesus. “It is only now that when the completion certificates have been issued that there have been claims that have been raised.

“Despite repeated efforts made by ourselves to get in touch and arrange for a meeting with the contractor, we are dismayed to note that

We felt these claims were not in sync with our estimates — but we wanted that to be independently verified ... so that the contractor doesn’t feel that we were imposing our own views.”

Rajesh Bhandari

| CFO at Croesus

they have not reciprocated by even meeting with us to settle the matter amicably.

“We felt these claims were not in sync with our estimates — but we wanted that to be independently verified by a QS [quantity surveyor] so that the contractor doesn’t feel that we were imposing our own views.

“But it was then that we came across the two projects being boarded up by the contractor. This is an illegal move, as we have confirmed from numerous sources.”

Construction industry sources say that in such a standoff between developers and contractors, the masterdeveloper or Municipality could intervene, especially as the projects are complete and awaiting the final certification. It is not known whether a developer or developer representatives can be “legally” denied permission by a contractor from access to the site.