The Big Four accountancy firm PwC has bought a Middle East consultancy that specialises in construction disputes.
PwC has acquired HLP Consulting – a 24-strong practice with offices in Dubai, Abu Dhabi and Qatar serving the entire GCC market.
HLP had been set up by former members of UK-based Trett Consulting in 2010. It was led by directors Mike Harding, Simon Lowe, Alastair Gray and Shaun Crawley, who all joined PwC this week.
John Wilkinson, a senior partner in PwC’s Middle East Forensic Services business, said that it had been building its capital projects team in the Middle East for about five years, which provides feasibility studies and can help with the financial aspect of project overruns, but often relied on other parts of its network for technical expertise.
He said that the HLP Consulting deal would bring this regional technical knowledge, as well as a core claims consultancy business that advises on legal disputes.
“With the declining oil price, everybody is looking at value from their projects. Projects are being put on hold for a period of time, some are being cancelled completely when obligations are entered into, and some are being continued but with more constrained finances around them.
“All of those factors are leading to an increase in, if not disputes, then the potential for disputes. It had been relatively benign, but in a market which is undertaking as much infrastructure spend as the Middle East, there will always be a decent element of that type of business.”
Claims within the region can often take years to settle. The contractor Arabtec recently confirmed to The National that it is to recommence a Dh1.4 billion claim against Meydan after previously agreeing to try to find an amicable solution three years ago to a dispute that originally began in 2008 when its joint venture was removed from the project to build Meydan racecourse.
Meanwhile, Umar Saleem, the finance director of fit-out contractor Depa, has said that he expects its long-running, Dh900 million dispute with New Doha International Airport (NDIA) to reach a conclusion early next year.
“We have the next hearing in November and we expect the award some time early next year,” he said.
Depa and its joint venture partner, Lindner, were removed from a project to fit out 17 lounges at NDIA in June 2012 and its project bonds were cashed.
The joint venture filed a claim against NDIA in September 2013, stating that its removal had been because of its unwillingness to accept less favourable contract terms.
mfahy@thenational.ae
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