More problems at Bar Al Jissa Developments? Tales of dispute and... subsidence

Mega-conglomerate Zubair Corporation's Bar Al Jissa Development, built up on the cliffs next to the 3 Shangri La Hotels on the beach, was fortunately all sold out before the real estate melt down (off plan) at top top prices. Thus the properties have been pretty much built, albeit late.

The Dawn apartment, at Bar Al Jissa Developments. On the level?


But I'm told a few problems are still on-going. There may be a problem with villas in the upper and lower 'Dawn' Section. The upper Dawn problem potentially effects units 1 to 10, the row closest to the road. The others in lower Dawn are the first 3 in from the road. It's minor subsidence, aka 'settlement' in construction speak.

If this is the case, the problem is due to a combination of the way this area was filled & retained, and the structural slab design and/or the workmanship. In effect, it couldn't withstand the recent rain and all that irrigation water being pored on to make some landscaping grow. This water is washing away some support to the buildings' foundation.

'Settlement' is occurring that is resulting in ugly cracks, gaps, etc that can’t be glossed over with a dose of filler and paint. Last week long meetings were held between the parties concerned.

Now, these sort of problems are, apparently, not unusual. The developer, Zubair, should have held a 10% retention on the contractor and had warranties & liabilities defined with the architect, engineers, Project Management Company, etc.

Theoretically the developer should just fix it – in engineering after all, money fixes everything. They should simply get the problem fixed, get the approvals and proceed to get the owners moved in and close on the final payment.

Another problem is that builder Bodgeit and Legit L&T (the engineers building the place) are a Zubair local sponsored company. Ooops. In fact their performance has been so lacklustre Zubair themselves actually dropped the company from the shortlist to tender to build the apartments around the marina development.

So now expect the usual round of the Omani Business Game called "pin the problem on the foreigners". But most of those involved should have reasonable risk mitigation clauses in their contracts to cover themselves, liability wise, for the 'settlement'.

I'm told HSBC, the mortgage lender to at least 25 BAJ props, wisely won’t release the final payment until the Developer warrants the security (with independent eng. back-up) of their collateral. And the poor purchasers are still waiting for their houses, already more than a year late.

One solution is apparently to drill and inject concrete into the sub-soil to each dwelling footings to rectify movement. Ouch. Someone's going to have to pay. But who?

Let the games begin!

To anyone involved in this battle who's reading this: you may increase your chances of playing Russell Crow's character than one of the others by getting advice.


Parties to the dispute may wish to note the services available from Muscat Confidential's well qualified Corporate Sponsor, Paul J. Waters, manager of the Construction Law Advisory Services Division of respected local law firm Dr. Abdullah Alsaidi & Co Law Office.