Russian contractor sues EMERCOM for 66.8M rubles over delayed project
Krasalfastroy LLC has initiated legal action against the regional branch of Russia’s Emergency Ministry (EMERCOM). The construction firm is seeking 66.8 million rubles in compensation over a disputed project management issue. The case revolves around delays and unpaid debts linked to the State Inspection Centre for Small Vessels.
The lawsuit stems from a construction and installation contract for Phase II of the EMERCOM facility. Krasalfastroy alleges the project management fell 420 days behind schedule due to the client’s failure to meet obligations. Consequently, the company revised the project plans and cost estimates to comply with updated regulations.
The total contract value increased to 131.6 million rubles after adjustments and extra work. However, EMERCOM’s regional office still owes Krasalfastroy over 49 million rubles. The firm is now demanding an additional 17.7 million rubles in penalties for the alleged breaches. A preliminary court hearing has been set for January 21, 2025. The outcome will determine whether the ministry must pay the full amount claimed by the contractor.
The dispute underscores financial and scheduling conflicts between Krasalfastroy and EMERCOM. If the court rules in the company’s favor, the ministry will face a total payout of 66.8 million rubles. The decision may also set a precedent for similar project management contractual disagreements in public sector construction.
