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October 2, 2019

Qatar Foundation wins a major victory against OHL and Contrack in £1.9bn hospital dispute

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London’s High Court has today confirmed that Qatar Foundation (QF) lawfully terminated its £1.9bn hospital contract with a joint venture (JV) of construction firms Contrack and London-listed OHL.

The High Court rejected the JV’s challenge against a November 2018 arbitration award, which found among other things that that QF lawfully terminated its contract to design and construct the state-of-the-art Sidra Hospital in Education City, Doha.

The High Court judgment noted that arbitration challenges are “not to be used simply because one of the parties is dissatisfied with the result” and praised the arbitration Tribunal as “eminent and highly experienced”.

QF claims hundreds of millions of dollars in the ongoing arbitration, with further hearings scheduled to deal with issues including recovery of the additional costs to complete construction.

QF is a major contributor to the Qatari construction sector. It continues to partner with international construction businesses on some of the most innovative construction projects in the region.

Mike Mitchell, General Counsel for Qatar Foundation, said: “Qatar Foundation is pleased that the court has confirmed our approach to this arbitration. We have always maintained that the JV’s challenge represented a futile last-ditch effort to evade accountability for their significant delays and defaults in delivering the Sidra project. We now look forward to concluding the arbitration and obtaining an appropriate monetary award.”