JEDDAH — People who have purchased flats in Lamar residential towers, under construction at Jeddah Corniche, are upset over the inordinate delay in getting possession of their homes as the company has filed a lawsuit against the contractor to retrieve SR200 million. Investors in the project said they have lost patience as they could not get possession of their flats this year as promised. Only 38 percent of the work is now complete and the contractor was supposed to complete 80 percent of the work by this time to hand over the towers by May 2017. "The company has been extending the date for handing over the flats and has alleged administrative failure for the delay," one investor said. The project has now five partners. The sales committee at the Housing Ministry has also confirmed work on the project has stopped. Speaking to Okaz/Saudi Gazette, an investor said the company had promised to hand over flats in March and April of 2016. "We have noticed that there is change in installment payment system," he added. Those who have purchased flats have urged the ministry to take action against the company for delaying the project and protect their rights. They said the developers have changed the status of investors from purchaser to those who have booked flats in the two towers. "This is a flagrant violation of the agreement signed with the company," a flat owner said. He said most investors in the project have paid 60 percent of money. Investors wonder how did the committee approve the company's revised contract. The company has asked investors to pay installments without delay and warned that any delay would cancel their booking and that they would be given back their money after deducting 25 percent. "The company will have the discretion to deal with the flats the way it likes," it added. Ahmed Halawani, chairman of Lamar's board of directors and Bakr Nazer, CEO of the company, told Okaz/Saudi Gazette that the delay in implementation of the project was caused by the contractor and Drake & Scull, which has 20 percent stake in the project. Another company holds 10 percent, he said, adding that work has stopped in February. "We have paid SR360 million to the contractor as guarantees and other dues. They have completed works valued at SR160 million. We have filed a lawsuit against the contractor to retrieve the remaining SR200 million for not completing the project," Halwani explained. He said the company was studying prospects of awarding the project to another contractor. "We expect to complete the project within a maximum of three years," he added.
