Emaar and Samsung finally sign Burj deal

Developer remains tight-lipped over reasons behind the delayed contract signing. After almost a year of contractual wrangling, developer Emaar and contractor Samsung Corporation have signed the US $876 million (AED3.2 billion) construction contract for the Burj Dubai.

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By  Sean Cronin Published  October 15, 2005

After almost a year of contractual wrangling, developer Emaar and contractor Samsung Corporation have signed the US $876 million (AED3.2 billion) construction contract for the Burj Dubai. The tower had already reached the 12th storey before the two sides agreed a deal. Neither party has commented on the precise reasons for the delay in agreeing the contract for what will become the world’s tallest structure. In a statement, Emaar said: “Following the appointment announcement in December 2004, Emaar went through a rigorous process of validating...the contract, while work on the project had already started. “This process culminated yesterday in Seoul, Korea where Emaar chief executive officer AJ Jaganathan and Samsung Corporation’s chief executive SD Lee signed the groundbreaking deal, which is a significant moment in the rise of the iconic Burj Dubai.” Construction of the tower has already reached the 12th floor and is progressing at a rate of one floor per week. The signing of the main construction contract follows the selection of a joint venture including ETA, Hitachi and Voltas as main mechanical and electrical contractor. Samsung Corporation was chosen in December 2004 as main contractor for the development following an eleven month international bidding process which attracted an international line-up of contractors. The Burj Dubai is already visible from Dubai’s main thoroughfare, the Sheikh Zayed Road, and is expected to change the skyline of Dubai when it is completed by the end of 2008.

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