Ballast Nedam strongly disputes allegations Air Products makes

Ballast Nedam and its subcontractors are banned from accessing the project Zuidbroek by general contractor Air Products. Therefore Ballast Nedam cannot proceed with its scope of works. A few hundred construction workers will most likely face a closed gate again on Monday 9 January. Ballast Nedam wants to complete its part of the scope of the nitrogen plant, despite the conflict.

Today, Air Products sent a letter to Ballast Nedam in which they try to terminate the contract. This termination letter however lacks any effect. This is because there is no ground for termination. Ballast Nedam complied with its contractual obligations and remains committed do so. The contract furthermore stipulates strict contractual steps to be taken first before Air Products can terminate the contract. Air Products did not meet these conditions.

Air Products is the main contractor who signed a FIDIC contract with Gasunie. Ballast Nedam is one of the 30 subcontractors contracted by Air Products. Air Products is amongst other things responsible for the design, procurement and coordination of project Zuidbroek. The project is significantly delayed due to Air Products' mismanagement and failure to timely supply equipment and materials as well as errors in the design provided by Air Products. This is beyond Ballast Nedam's control and Ballast Nedam cannot be held responsible for this.

Ballast Nedam is unpleasantly surprised by Air Products' actions, with which Air Products is effectively preventing BNI from completing its scope of the works and causing delays to the completion of the project. Ballast Nedam is willing and available carry out the works and find a practical solution with all stakeholders involved.

The project is for more than 97 % complete. Ballast Nedam is committed to completing the remaining 3% of its scope. Air Products is contractually required to grant Ballast Nedam and its subcontractors access to the Site and allow Ballast Nedam to complete its scope of work.

"Ballast Nedam strongly disputes the allegations made by Air Products and we do not understand the Air Products' actions. It's about the last 3 per cent," states Olav Padberg, Ballast Nedam board member. "This project is of great social importance and Ballast Nedam remains dedicated to finding a solution. Terminating the project now would lead to more delays and more costs. To us the actions and allegations seem very odd. Let’s finish the project as we are nearly there, and then discuss any disagreements. As Ballast Nedam, our main goal is clear: we want to finish the project. This is why we remain committed so that we can get back to work as soon as possible. We are still open for communication to find a solution.”

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