07/07/2016 - 14:43

Duro anger at Samsung stall

07/07/2016 - 14:43

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Spanish contractor Duro Felguera has suspended ongoing obligations to Samsung C&T, after the Roy Hill project head contractor refused to pay out on five recent court adjudications.

Duro anger at Samsung stall
Facilities at Roy Hill when under construction last year.

Spanish contractor Duro Felguera has suspended ongoing obligations to Samsung C&T, after the Roy Hill Holdings project head contractor refused to pay out on five recent court adjudications.

Such obligations would include fixing agreed defects and attending to warranty issues.

Duro operations director Raul Serrano said Samsung had refused to grant a certificate for practical completion of its share of work at the project, valued at more than $US10 billion.

“Duro is aware that Roy Hill has granted Samsung practical completion of Samsung's own works at the project,” Mr Serrano said.

“The Duro works are a subset of the Samsung works, which have now been certified as complete.

“Duro has exercised its rights under the Construction Contracts Act 2004 (WA) to suspend any ongoing obligations to Samsung, because of Samsung's refusal to pay out on five successful adjudication determinations made under that Act.  

“The unpaid determinations together amount to an outstanding statutory debt of around $65 million, which Duro is pursuing through the courts and will be heard in late July.

“Interest on that unpaid amount continues to accrue at more than $10,000 per day.  

“In total, Duro is owed well in excess of $100 million by Samsung in relation to a $500 million sub contract for work on Roy Hill.”

Laing O’Rourke is another contractor pursuing Samsung for payment after an adjudication went its way.

It comes after Duro scored a victory in a recent court battle against Samsung, with the next stage of an ongoing dispute to be heard by Singaporean arbitrators.

The disagreement dates back to the collapse of Forge, which had signed a joint venture with Duro for delivery of a processing plant at Roy Hill.

Samsung opted to undertake Forge’s portion of the work and signed a term sheet with Duro which replaced the previous contract.

That led to a dispute over jurisdiction, with Samsung arguing some claims should be heard in the WA Supreme Court.

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