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Arabtec Saudi Arabia could not meet a bank guarantee to work on the Lamar Tower in Jeddah and attempted to source specialists locally, leading to the contractor’s subsequent departure from the project, according to a source familiar with the matter.
The UAE company was awarded a SAR 2 billion contract in June 2009 to work on the twin tower development in the city’s Corniche district. It had been the second contractor employed by Al Jawdah Saudi Contracting, the main contractor, following the termination of an agreement with Arabian Construction Company.
A source said the company had not been able to meet a standard bank guarantee for its work on the project. Further, with Dubai still buoyant with projects, Arabtec “would not send people down to Jeddah”, instead choosing to procure workers locally.
Saudi Lebanese Contracting Company – also known as Tarouk – has been the replacement contractor for the last few months.
The project comprises of two towers – one 372 metres, the second 293 metres – that will contain furnished apartments and cover a total area of 415,500 square metres. The podium below will contain a five-star hotel, a shopping mall, conference rooms, a restaurant and a ballroom, among other features. The projects is one of many tower and retail developments in the city’s coastal area, which includes the upcoming Al Jawharah Tower by DAMAC Properties.
Earlier this year CW reported that the project would be completed in 2013, from an earlier deadline of this year.
Three hotel companies are in negotiation with Lamar Company to occupy the podium, according to Salim Fardous, CEO. One of the hotels has submitted designs that Fardous said is “part of the consideration” into the design for the interior of the building, although a decision will be made in around June, he added.
