Company estimates repair costs for contractor defects
The Court of Cassation has ruled that the dispute between the two companies has been resolved due to the latter's failure to fulfill its contractual obligations related to waterproofing work in a multi-use building, leading to the conclusion that the case is closed. The first company had filed a lawsuit demanding that the second company be ordered to complete the repairs within one year and to pay a delay fine of one million riyals for each day of delay, in addition to compensation for damages resulting from the inability to use the floors during the implementation period. The court confirmed that the cost of fixing the defects specified in the letter of guarantee should be related to the amount of the fines and compensation, and it concluded that the final compensation includes the cost of rectifying the defects, while dismissing additional claims. The court also noted that the previous judgment on this matter contained a flaw in reasoning and was contrary to the law.
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