Headquarters of National Company for Learning & Education
National Company for Learning & Education’s (NCLE) board of directors decided, on Dec. 2, to terminate the contract with Aja Trading and Contracting Co. (a related party) to establish Tilal Al-Doha educational campus, according to a bourse filing.
The contract was terminated by mutual consent of both parties, without penalty to either party, in accordance with contract terms.
This comes due to the developments that have occurred on labor and materials costs due to COVID-19 pandemic, which led to interruption of construction during the lockdown periods.
Moreover, NCLE plans additional works related to finishings, modifications to some specifications, and other works that the contractor is unable to finalize within the specified schedule.
The project’s structure is complete, as 55% of the contract works have been accomplished, the company pointed out, noting that it is moving forward to finalize the project on time.
Accordingly, NCLE intends to award the project’s finishing works to a specialized contractor.
NCLE stated that there is no change in costs, as payment will be based on the actual percentage of the work completed, pointing out that there are no additional obligations, in accordance with contract terms.
In a separate statement, NCLE announced that it signed, on Dec. 4, a contract with Suhul Al-Baidha Establishment for Construction to complete Tilal Al-Doha educational campus construction at a value of SAR 18.2 million.
The contract value includes the completion of the remaining works in the project with modifications to some specifications, in addition to the value of the additional works.
There are no related parties to the contract, it noted.
In September 2020, NCLE’s board of directors decided to temporarily postpone the completion of Tilal Al-Doha educational campus project due to the developments that occurred on COVID-19 pandemic, which led to the interruption of construction works, in addition to the economic feasibility related to the project opening timing, according to data compiled by Argaam.
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