Construction & Engineering Lawyers
We act for owners, contractors and consultants on project contracts and disputes.
Overview
Construction disputes are not won by advocacy; they are won by documents: handover minutes, variation orders, formal correspondence and dated progress reports. A contractor who documents daily enters a dispute in an entirely different position from one who followed verbal instructions and claimed for them a year later.
We work with employers, contractors and consultants on reviewing and drafting main and subcontracts, managing claims, variations and extensions of time, delay and penalty issues, performance and advance payment guarantees, and the dispute itself before the courts or in arbitration.
Most disagreements trace to three points: a loosely defined scope of work, no agreed mechanism for pricing variations, and a delay clause that does not distinguish excusable delay from culpable delay. Fixing those three in the contract costs far less than arguing them afterwards.
The legal framework
Construction projects sit within a layered contractual and regulatory framework:
- The Civil Transactions Law on construction contracts and contractual liability
- The Government Tenders and Procurement Law on public sector projects
- Municipal requirements and the Saudi Building Code
- The Arbitration Law where the contract selects arbitration
- The Labour Law and site safety and workforce requirements
- Performance and advance payment guarantees and the rules on calling them
Situations we handle
A claim for extension of time
An extension is built on events documented with dates and their effect on the critical path, not on a general description of delay.
Unpriced variation orders
Executing before the price is agreed is the biggest single source of loss. We fix the pricing mechanism in the contract from the outset.
Delay penalties applied to a contractor
We defend by proving delay attributable to the employer or to external conditions, supported by correspondence and the programme.
Defects appearing after handover
Liability for defects continues after handover for defined periods. Early technical documentation determines who is actually responsible.
A dispute with a subcontractor
Where the subcontract does not mirror the main contract, the gap is normally borne by the main contractor alone.
Costly mistakes we see
- 1
Acting on verbal instructions
A verbal direction from the employer or consultant is denied by everyone when the claim is made. Do not execute before a written variation order.
- 2
Late correspondence
Claims must be notified within the periods the contract sets. Late notice can forfeit the right even where the entitlement is genuine.
- 3
Accepting an unrealistic programme
An impossible schedule produces a certain penalty. Negotiating it before signature is easier than proving impossibility later.
- 4
A subcontract that does not match the main contract
Different periods or obligations between the two transfer the whole risk to the main contractor for nothing.
How the procedure runs, step by step
Construction disputes are decided by the daily record: the variation order, the payment application, the site minute. A contractor who does not document daily loses a valid claim for want of proof.
- 1
Review the contract and bill of quantities
We read the contract with its annexes and specifications: the payment application mechanism, variations, extension of time, and the notice clause. A notice-within-a-period clause is the single most common killer of contractor claims.
- 2
Document execution and changes
We put a documentation system in place: site minutes, dated photographs, formal correspondence, and variation orders signed before the work is done. Extra work performed on a verbal instruction is a guaranteed loss in dispute.
- 3
Extension of time and compensation claims
We build extension claims on critical path analysis, not on a narrative of delay. A claim supported programmatically and financially is accepted; a descriptive one is referred to an expert and consumes a year.
- 4
Settlement or arbitration
Most major construction contracts refer disputes to arbitration. We assess viability before starting: the value of the claim against the cost of arbitration and the technical expertise needed to prove it.
- 5
Handover and post-completion warranties
Provisional and final handover, the defects liability period, latent defect cover and the decennial liability on structural works. We fix the handover dates precisely because every warranty and liability period runs from them.
Documents we will ask you for
- The contract, annexes and technical specifications
- The bill of quantities and the approved programme
- Payment applications submitted and certified
- Variation orders and the related correspondence
- Site minutes and progress reports
- Bank guarantees and letters of guarantee
Fees and timelines
Reviewing and drafting construction contracts is offered at a fixed fee per contract. Claim files are priced by stage: document review and building the claim, then negotiation, then litigation or arbitration if required.
On timing: contract review takes three to seven working days. Building a delay claim usually takes two to six weeks depending on document volume. Disputes before a court or tribunal run for months and generally require engineering expertise.
Common questions
What is needed for an extension of time?
That the cause of delay is not attributable to the contractor, that it is documented with dates, that it was notified within the period the contract requires, and that its effect on the critical path is demonstrated. Missing any of these materially weakens the claim.
Can delay penalties be challenged?
Yes, by showing the delay arose from causes the contractor does not bear, or that the penalty exceeds its contractual and statutory limits. The defence is built on the programme and correspondence, not on general submissions.
What do we do about a verbal variation order?
Do not execute before it is confirmed in writing. If site necessity forces you to proceed, send immediate correspondence recording the instruction and its cost and time effect, and keep proof of receipt.
How long does a contractor remain liable for defects?
Liability for building defects runs for periods set by the law and the contract, and differs between apparent, latent and fundamental structural defects. Technical documentation at the time the defect appears is what settles responsibility.
Are performance guarantees called automatically?
No; calling them is governed by the contract terms and the nature of the instrument. An on-demand bank guarantee is treated differently from a conditional guarantee, which is why we review the wording before it is issued.
Court or arbitration for construction disputes?
On large technical projects, usually arbitration, because the tribunal can include engineering expertise and confidentiality is preserved. On smaller projects arbitration costs are hard to justify against the amount in dispute.
Do you review government contracts?
Yes. Public sector projects fall under the Government Tenders and Procurement Law, which has its own rules on variation, extension and penalties that differ from private contracts.
What is the most important clause in a construction contract?
The scope of work. Most disputes begin with disagreement over whether an item was within scope or a variation deserving payment. Clarity here prevents an entire chain of later arguments.
Related services
Lawyers for Construction Companies
Specialist legal support for construction contracting businesses.
Public Procurement Lawyers
We help suppliers qualify and compete for government contracts, and challenge award decisions.
Arbitration & Mediation Lawyers
We act for parties in domestic and international commercial arbitration, and draft arbitration clauses that hold up when tested.