Beijing Building Project

Arbitration regarding unfinished building project

PS Consulting acted as counsel for the contractor in a major arbitration case concerning an unfinished building project in Beijing, PRC. The case arose from the construction of a shopping mall on a design & build basis. The employer had encountered financial difficulties during the Asian financial crisis at the end of the 1990’s and the contractor terminated the contract when the shopping mall was only partially complete. A disagreement arose over the evaluation of the compensation to which the contractor was entitled.

PS Consulting was initially requested to evaluate the compensation and negotiate agreements not only with the employer but also with subcontractors, both local and foreign. Agreements were reached with the subcontractors but not with the employer. Arbitral proceedings were commenced according to CIETAC procedure. We successfully represented the contractor in these proceedings and obtained an award of compensation for the profit, which the Contractor would have earned if he had completed the project. Subsequently, we advised the contractor on the execution of the arbitral award.

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