LLC Onikom, registered in the Russian Federation by Alg

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Uploaded: 10.12.2018
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Onikom LLC, registered in the Russian Federation by Algerian citizen U.Issam, on February 1, 2001 entered into an agreement on the construction of a hotel complex with Invest-Service OJSC in the Tyumen Region. The parties also made and signed as an annex to the contract an approximate estimate of the work. The deadline for the building of the hotel was set as well - October 1, 2002. The provision of the construction project with the necessary materials and equipment was assigned to the contractor.
However, the beginning of the work was delayed for two months. In September 2002, the contractor invited the customer to accept and pay for the work performed. During the acceptance process, it turned out that Onikon LLC is trying to hand over an object with deficiencies. The latter appeared (as explained by U. Issam) due to the fact that because of the difficult political situation in Arzhir, the contractor could not make timely delivery of building materials and necessary equipment to the object. In addition, he faced difficulties in obtaining visas for workers to enter the Russian Federation and the harsh climatic conditions of Russia.
It was also found that the contractor almost twice exceeded the approximate estimate and presented for payment the cost of the re-performed roofing work, which he was forced to perform when, due to an accidental fire, part of the roof burned down.
The customer refused to pay for all the work and, declaring that the contractual relationship had been canceled, ordered the construction work of Stroyrem LLC to charge all costs to Onikon LLC.
Analyze the arguments of the parties and decide the case.

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