Construction firm fined BD20,000 for abandoning Villa project

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Email: ashen@newsobahrain.com

A construction company has been hit with a hefty BD20,000 fine after abandoning a villa construction project halfway, leaving the owner entangled in a legal battle.

The High Civil Court ordered the company to repay the full amount with 2% interest from the contract’s termination date until the debt is cleared. The company was also saddled with legal fees.

The case arose when the villa owner paid BD20,000 upfront after signing a BD73,500 contract.

However, as the project progressed, the owner found the company’s work substandard and faced repeated delays despite numerous requests for completion.

Zainab Ali Madan, the lawyer representing the villa owner, explained that an initial termination agreement was reached, with the company agreeing to return BD17,500.

A second agreement followed, promising the full refund of BD20,000, but the company failed to honour it.

According to Article 128 of the Civil Code, contracts serve as binding law between the parties, and Article 584 outlines construction contracts as agreements where one party is paid to complete work without being controlled by the other.

Although the construction company tried to contest the documents provided, the court sided with the villa owner, accepting the original paperwork as valid evidence.