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British hospital at legal odds with UAE contractor.

The UKAAEs National Health Service (NHS) is to take legal action against a United Arab Emirates (UAE) based contractor for causing delays on a new day

case unit project at St Luke's Hospital in Market Harborough, near the English city of Leicester. News of the case was reported by local Leicestershire

newspaper, the Harborough Mail.

The UK subsidiary of Modcon, a contractor headquartered in one of the seven emirates that make up the UAE, Ras Al Khaimah, is at the focal point of a

row surrounding the now stranded US$ 3.95 million construction contract at St Lukes.

The firmAAEs website describes Modcon FZ LLC as Aoestablished in Ras Al Kaimah Port as a Free Zone Company for Design, Manufacture and Installation of

Modular Buildings. Modular Building Technology with German know-how [which] enables Modcon to deliver high quality and highly durable modular

buildings in half the time required for conventionally built buildingsAo. It goes on to say that, AoModcon modular constructions are specialists in the design

and construction of complex modular healthcare buildings using modular medical construction methodsAo. The firm had previously delivered three operating

rooms at Al Ain Hospital in the emirate of Abu Dhabi under a design and build contract.

ModCon has been served with a legal notice instigated by NHS Leicestershire County which demands that the company resolve on site problems arising

from damaged prefabricated units shipped over from the UAE within14 days, according to the Harborough Mail. The modular build components were

dropped into position at the hospital in March, however once the damage was revealed the project became mired in delays.

The manner of the contract award is now under investigation by a group of Leicestershire local councillors, who are questioning the fact that the

requirement was not advertised through the Official Journal of the European Union (OJEU), the newspaper added.

In its response to the councillors concerns a NHS Leicestershire County spokesman advised the paper, AoWe followed EU procurement legislation but were

not required to advertise for tenders in OJEU as the total value of the construction contract falls below the thresholdAo. He concluded, AoWe followed our own

formal tendering process. The trust undertook a competitive tendering process to secure best value for the taxpayerAo.

Penalties in the event that Modcon fails to comply with the legal notice are yet to be determined.

Copyright Andy McTiernan. All rights reserved.

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Publication:Andy McTiernan Property & Economy Bulletin
Geographic Code:7UNIT
Date:Jun 3, 2011
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