The Kuwait National Petroleum Company has issued change orders to package the environmental fuel project, of about 36 million dinars during fiscal 2021-2022, to settle contractors’ claims/
Moreover, according to a local Arabic daily, the Audit Bureau reported continued existence of financial claims submitted by the contractors of the Port Abdullah 1 and Port Abdullah 2 packages, of about 290 million dinars. These claims are still under study and had not been decided by the company until March 31, 2022.
The Bureau had previously indicated this in its report for the previous fiscal, and the company stated at the time that all claims submitted by the contractor are being considered, and among the reasons for the delay in settling claims was that when reviewing some claims, the contractor did not provide the required documentary proof.
The Bureau asked again to limit the issuance of change orders to package the project and the need to urge contractors to provide the required information and evidence first, and to help quickly decide on all claims submitted by contractors, and to study the effectiveness of the mechanism that the company referred to in its response in the previous fiscal year, as continuing to follow the procedures itself and the current mechanism leading to continued unresolved observations, thus accumulating claims from year to year.
The company stated that the settlement of claims is based on the mechanism used to resolve disputes stipulated in the contracts of the environmental fuel project, and all claims submitted by the contractor are currently being considered, knowing that one of the reasons for the delay in settling some claims is the contractor’s non-response to the inquiries and clarifications asked for by the company since the project team rejects the claim because the conditions and eligibility of the claim are not met.
Sources added that the contractor has the right to submit the claim within a month of the reason for the claim, as stipulated in Clause No. 45 in the general clauses of the contract, but there is no specific timetable for settling the claim.
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