Depa Limited has announced that its joint venture company Lindner Depa has had its contract terminated by Doha International Airport.

Lindner Depa’s performance bond and advance payment guarantee had been pulled last week due to Lindner Depa's refusal to accept what it said were new non-favourable contract terms and conditions. The company said that it is in discussions with its lawyers in order to assess the situation and consider its options. The contract performance bond was for AED96m (£16.8m) and the advance payment guarantee  was for AED81m (£14.1m).

The contract, worth approximately AED900 million (£157m), comprised the interior fit-out of all 17 lounges at the New Doha International Airport.

Lindner Depa’s refusal to accept new contract terms and conditions, which it said included dropping all extension-of-time costs and acceleration costs. It said that it was denied full access to the project site to perform its contract scope of work for the first nine months of this sixteen-month project. As a result of the delay, Lindner Depa has not been able to start all of its interior contracting work on site as planned and consequently, would not be able to meet its original contract completion date, it said.

The New Doha International Airport project represented the largest project in the Company’s backlog, but Depa said that is still working on more than 200 projects across the Middle East, Africa and South East Asia, representing more than AED3bn in total.

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