Bovis Lend Lease sues Blue City management
Bovis Lend Lease, a UK based construction company with a global reach, is suing Blue City management (presumably BCC1), for unpaid bills accrued for its tenure as project manager of the first phase of the Blue City development between 2005 and 2008.
The company is claiming £920,000 ($1.5million) of damages and interest in addition to the fees owed. The writ against the developer alleges that Dr Fari Akhlaghi, CEO of the company at the time, had assured Bovis that it “should have no worries or doubts” about receiving payment. The fact that the project was government-backed added credibility to BCC1.
Bovis is just one of numerous British companies that are owed a lot of money in the Gulf. The estimated total of fees owing is at least £400 million. A spokesman for a group representing British consultants overseas has said that there has always been a problem of delayed payment in the Gulf region, but the money would usually come in eventually. Now it is not.
Bovis Lend Lease has now ceased work on the Blue City project.
Update at 24th June/3rd July 2009
Richard Russell, CEO of BCC1, has hit back at reports about Bovis Lend Lease's writ against the company published in Building Magazine last week. He said that Bovis had already received $1million before beginning work and would receive full payment for services rendered in due course. Mr Russell was at pains to point out that Bovis Lend Lease was never Project Manager of the Blue City project although it had provided project management services, ie, personnel. That seems to me like splitting hairs, but I imagine that there would be a legal definition of the distinction.
He was 'afraid that 'the original report was “trying to tie us to the situation in the Emirates, which is completely unfounded”, in reference to a spate of cases of unpaid services in the UAE.'
Mr Russell also confirmed that the case would be heard in a British court.
The company is claiming £920,000 ($1.5million) of damages and interest in addition to the fees owed. The writ against the developer alleges that Dr Fari Akhlaghi, CEO of the company at the time, had assured Bovis that it “should have no worries or doubts” about receiving payment. The fact that the project was government-backed added credibility to BCC1.
Bovis is just one of numerous British companies that are owed a lot of money in the Gulf. The estimated total of fees owing is at least £400 million. A spokesman for a group representing British consultants overseas has said that there has always been a problem of delayed payment in the Gulf region, but the money would usually come in eventually. Now it is not.
Bovis Lend Lease has now ceased work on the Blue City project.
Update at 24th June/3rd July 2009
Richard Russell, CEO of BCC1, has hit back at reports about Bovis Lend Lease's writ against the company published in Building Magazine last week. He said that Bovis had already received $1million before beginning work and would receive full payment for services rendered in due course. Mr Russell was at pains to point out that Bovis Lend Lease was never Project Manager of the Blue City project although it had provided project management services, ie, personnel. That seems to me like splitting hairs, but I imagine that there would be a legal definition of the distinction.
He was 'afraid that 'the original report was “trying to tie us to the situation in the Emirates, which is completely unfounded”, in reference to a spate of cases of unpaid services in the UAE.'
Mr Russell also confirmed that the case would be heard in a British court.
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