04/02/2011 - 14:50

Nomad hit with $4.25m damages claim

04/02/2011 - 14:50

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Nomad Building Solutions has been slapped with a $4.25 million claim for damages, over delays in designing and building central facilities for Chevron's Gorgon liquefied natural gas project.

Nomad hit with $4.25m damages claim

Nomad Building Solutions has been slapped with a $4.25 million claim for damages, over delays in designing and building central facilities for Chevron's Gorgon liquefied natural gas project.

Nomad subsidiary Nomad Modular Building was awarded a $43 million contract by the Thiess Decmil Kentz joint venture in July 2009, to build kitchens and dining rooms to cater for up to 3,000 workers, a communications building, two wet messes and 14 other administration and recreational buildings.

Nomad said the project's complexity, late design changes by the joint venture and compliance requirements for Barrow Island had adversely impacted the first phase of design and construction.

Nomad said it had dealt with the challenges, and completed the construction of all buildings two days after the contract's December 15 due date.

"Nomad is currently considering its position with regard to the liquidated damages claim together with any impact on the company's half year financial results which are due to be released in late February," Nomad said in a statement to the ASX.

"Nomad intends to resist TDKJV's claim and has claims against TDKJV for work completed amounting to some $4 million."

Shares in Nomad closed trading today at 16 cents, down 11 per cent from its opening price of 18 cents.

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