D
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This is a tad old, but I thought still relevant.
This was good news for BAE, though I'm not sure what the balance of the contract was - obviously enough to go to arbitration. I think Brunei made a mistake in not thinking about the manpower required to operate the three ships - they should have gone with something that required a smaller crew. Commentators from the broadsheet newspapers I've read suggested the claim that they were "not to spec" was a cover for the fact Brunei couldn't handle them properly.
On a side-note, this is a good use of ADR - court proceedings are so costly and time-consuming.
Three warships built at BAE shipyard in Glasgow for the Royal Brunei Navy are finally to be sold after a long-running legal dispute was resolved. A £600m deal between BAE Systems and Brunei was signed in 1998, resulting in the completion of three coastal patrol frigates by 2004. However the Sultan of Brunei claimed the ships were not as he had ordered, and they remained berthed in Scotstoun.
The arbitration dispute ended in May, allowing the ships to be sold on. Following finalisation of contracts, the ships were able to be handed over to the Royal Brunei Technical Services (RBTS), which is the Brunei's equivalent of the Ministry of Defence.
A spokesman for BAE Systems said that the shipbuilders had been paid for the completion of the ships, and that the ships had now been handed over to RBTS.
This was good news for BAE, though I'm not sure what the balance of the contract was - obviously enough to go to arbitration. I think Brunei made a mistake in not thinking about the manpower required to operate the three ships - they should have gone with something that required a smaller crew. Commentators from the broadsheet newspapers I've read suggested the claim that they were "not to spec" was a cover for the fact Brunei couldn't handle them properly.
On a side-note, this is a good use of ADR - court proceedings are so costly and time-consuming.