Dubai’s Emaar Adds New Contract Clause After Project Delays
(Bloomberg) -- Emaar Properties PJSC, the Dubai-based developer of the world’s tallest tower, is adding a new clause to contracts in response to project delays.
The missed deadlines are a “real source of concern” and were caused by plans being changed during construction, Emaar founder Mohamed Alabbar wrote in a letter to employees, a copy of which was seen by Bloomberg.
“To safeguard against such delays and changes in future, all contractors and consultants will be legally bound by a new contract clause,” Alabbar wrote. “Once the projects are awarded, no changes can be allowed or made to the contracts or designs without my prior written approval.”
Emaar didn’t immediately respond to request seeking comment.
Emaar temporarily halted new projects last year amid a property glut that, combined with the coronavirus pandemic, weighed on prices. Dubai’s property market has been improving and the pace of residential property price declines has been slowing this year. Emaar Properties said sales in the first five months of this year more than tripled from 2020 to 10.5 billion dirhams ($2.8 billion).
©2021 Bloomberg L.P.