Construction Disputes

A full-service approach to construction contracts

Integrated and combined risk management along the full lifecycle of construction and infrastructure projects for preventing and resolving delay, disruption and dispute.

Our practice group dealing with construction and engineering disputes provides a full-service approach to construction contracts that covers the complete lifecycle of construction and infrastructure projects. We help contractors with:

  • project appraisal: legal or risk allocation issues before responding to a tender
  • pre-qualification: completion of pre-qualifications documentation in accordance with PPRA requirements
  • tender and negotiation: all legal aspects of tender and post-tender negotiations, including post-tender discussions and clarifications; contract drafting and negotiations (including, where relevant, with third-party debt providers); and sub-contracts
  • post-contract award: the management of contracts throughout a project’s life-cycle
  • claims-management: contracts, claim administration, delay analysis, quantification

We understand the engineering complexities of construction and infrastructure projects and help contractors and consultants put in processes to avoid risks, or spot them early for quick resolution. We make sure that contractual arrangements reflect project administration procedures and that contractual provisions are strictly followed during project execution. Any delay in issuing notices, supplying incomplete information, or maintaining improper records can have major consequences should the project end up in a dispute. We ensure that during the life of the project, the contractor follows the contract to the letter and spirit by providing advice at each and every step.

Should there be a disagreement, we help the contractor draft, argue and contest its claims before all forums including engineer determination, DAB, arbitration or mediation. Our team has more than two decades of experience in advising on major construction projects under both tailor-made and standard form contracts including FIDIC 1987 Red Book, FIDIC 1999 Red Book, FIDIC Yellow Book, FIDIC 2010 MDB Harmonised Edition, ADB Standard Form Contract for Procurement of Works, PEC Standard Form Contracts, etc. This includes advising on claims relating to:

  • EOT, suspension, Force Majeure, delays, disruption, acceleration
  • Compensation for Idling and Prolongation costs, Acceleration costs, Escalation in BOQ rates, variations (VOs), valuation of variations
  • Termination, Repudiation and Restitution

On large projects, our lawyers work in tandem with contract specialists and engineers to ensure that nothing slips through the cracks when clients shift between legal and technical advice.

Selected cases where we acted as counsel in disputes relating to the construction sector:

  • Sinohydro and Power Construction Corporation of China in relation to its dispute against WAPDA arising from the $350 million contract for the construction of Tarbela 5 Hydropower Project
  • China Gezhouba Group Company Limited in relation to construction disputes arising from the Neelum-Jhelum Hydro Power Project, Sukki Kinary Hydro Power Project and Dassu Dam Hydro Power Project
  • China Civil Engineering Construction Corporation-Habib-Matracon-JV in relation to extension of time (EOT) and prolongation cost claims arising from the Upgradation and Re-construction of the Allama Iqbal International Airport Lahore
  • Power Construction Corporation of China-Qavi Engineering JV in relation to an arbitral dispute arising from the imposition of liquidated damages (LDs), Extension of Time (EOT) claim and date of issuance of taking-over certificate (TOC) with respect to the construction of the 1230 MW gas power plant at Haveli Bahadur Shah, Punjab
  • Habib Construction Services on bringing prolongation, acceleration, idling cost and escalation claims in relation to an ADB funded Project for the construction of the Local Government Academy Building
  • Sichuan Province Geological Engineering Complex-Maqbool Calsons JV in relation to disputes pertaining to variation orders (VOs) in relation to the design of the Peshawar Metro Bus Project
  • ZKB-Reliable JV in relation to the preparation of extension of time (EOT) claims for the Rehabilitation / Improvement of Water Supply and Sewerage System in Sialkot (Lot 1, 2, 3 and 4) funded by the Asian Development Bank
  • Kingcrete Builders in relation to claims arising out of the termination of a contract for the construction of Federal Government Employees Housing Authority Apartment Building in G-13, Islamabad (a flagship project of the Prime Minister’s Naya Pakistan Housing Scheme)
  • Maqbool-Calsons JV with respect to its claim for the revision of rates in light of Covid-19 in relation to the Infrastructure Development of Quaid-e-Azam Business Park (QABP), Sheikhupura
  • SMADB-Shahrukh-JV in relation its dispute against the National Highway Authority (NHA) arising from the construction of 2-Lanes Highway from Basima to Khuzdar (N-30)
  • Guarantee Engineers Private Limited in relation to the preparation of claims for valuation of variations and other non-BOQ items arising from the construction of the Tertiary Care Hospital Building Nishter-II, Multan
  • Fizza Developers Private Limited in a construction dispute against Essem Hotels arising from the construction and development of an international 5-star hotel and shopping mall in Islamabad
  • Zealcon Engineering Private Limited in an arbitral dispute against Oil and Gas Development Company Limited (OGDCL) arising from the construction and development of the UCH-II Gas Field Project
  • Mirza Associates Engineering Services Private Limited in relation to a dispute arising from the provision of consultancy services for the Kohala Hydropower Project
  • Ch. Abdul Latif & Sons with respect to the contract management of its project with the Lahore Development Authority (LDA) for the Construction of Underpass at Samnabad Morr, Multan Road, Lahore
  • Mughals Pakistan Private Limited in an ad-hoc arbitration under FIDIC Red Book 1999 arising from the construction of the Serena Hotel Project in Lahore against Property Real Estate Investment and Management Company (PRIMACO)
  • TAG Engineering WLL in bringing a claim against Public Works Authority, Qatar arising out of a dispute relating to the construction of the Qatar Radio & Television Corp Complex
  • Vinci SA in a dispute against the Government of Punjab arising from an O&M Contract for a 10-MGD Surface Water Treatment Plant
  • OMV Maurice Energy Limited in a dispute arising out of a petroleum concession agreement against Zaver Petroleum Corporation before the ICC
  • SMEC Int’l Pty Ltd (Australia)&JV Partners against Associated Technologies Private Limited arising from a contract for the preparation of Feasibility Study for the Karot Hydropower Project

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“ABS & Co offers an impressive disputes practice with offices in Lahore and Islamabad regularly representing the local subsidiaries of blue-chip multinationals and also a number of government entities."

Chambers, 2022

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