Qatar Real Estate News
Contracting firms in state projects can now claim compensations
Contracting companies involved with state projects are now allowed to claim compensation for delayed payment or delays in project implementation owing to change in design or for delays due to other technical reasons.
Similarly, contractors fined for project delays, due to genuine reasons, can now seek leniency or waiver.
Firms supplying materials to state agencies can also claim compensation, in case they suffer loses due to sudden surge in import costs or for any such genuine reason.
Such a measure follows assurance given by the Prime Minister and Foreign Minister, H.H. Sheikh Hamad bin Jassem bin Jabor Al Thani, during his interface with local businessmen at Doha Sheraton recently.
A committee has been established in the Ministry of Economy and Finance to look into claims from contractors on the above grounds.
H.H. Sheikh Khalifa Al Thani ratified a Cabinet decision (No.38 of 2009) ordering establishment of the aforesaid panel at the Ministry of Economy and Finance.
The panel will have representatives from various ministries and stage agencies, including Ministry of Municipality and Urban Planning, Ministry of Justice and the State Audit Bureau. These bodies will be free to nominate representatives of their choice, and each will be paid a monthly professional fee of QR4000.
The membership tenure of the panel will be three years, which could be further renewed by a year or more. There will also be provisions for altering the agreement with a contractor if the project is delayed for any particular reason.
Cases already in the court will not be accepted and those who do are not ready to accept the ruling of the committee can however, proceed with their case in the judiciary.
Posted on 6/10/2009