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Contractors not wanting to work before getting paid

Discussion in 'Dubai property' started by Datum1m, Dec 3, 2008.

  1. Datum1m

    Datum1m New Member

    Developers who have not started on site construction will not be able to do so unless they can get their Building Contractors to give them credit. This is because the Developers can only take money out of the Escrow accounts to pay their Building Contractors when certain stages of the construction work have been certified as been complete by the Escrow account Managers appointed Quantity Surveyor. However like the rest of us the Building Contractors have been reading the papers regarding the escalating numbers of default payments and are now telling the Developers they want payment before they will do the next stage of construction, but as we all know the Developers rely completely on our money and without it they have nothing in reserve.

    This standoff between the Builders and Developers most put us purchasers in a strong position if we can unite, because together we control the complete finances of any Development in Dubai. I feel if a Developer has not yet started on site construction the Development should be completely cancelled and we should get our money back in full. We cannot get finance and even if we could we would be servicing a loan for a property which is worth considerably less than we paid for it, therefore we would be in negative equity for a number of years. I feel the Dubai skyline is going to look a real mess with partly completed developments scattered around everywhere, due to no finance, so why should the Government allow Developers to start construction on any project without them been able to demonstrate they have the FULL financial support of their purchases. To me it would be irresponsible of the Government not to intervene in these circumstances, they are well aware of the downturn in the market, so why would it be in the countries interests to have abandoned construction sites dotted around everywhere, it just wouldn’t look good to anyone visiting Dubai.
     
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