top of page
Private Capital.jpg

Dispute Resolution

Construction Arbitration

Overview

Our law firm handles some of the region's most demanding construction and engineering disputes.

We combine detailed knowledge of FIDIC and bespoke regional contract forms with the forensic delay, quantum and evidence analysis that complex EPC claims demand - acting for contractors, employers, developers and government bodies from claim preparation through to award and enforcement.

We advise contractors, employers, developers and government bodies through construction disputes under FIDIC and bespoke forms of contract - from delay and disruption claims through to arbitration, enforcement, and negotiated settlement.

Our work spans the full life of a dispute: drafting and reviewing conditions of contract, structuring case strategy against complex EPC claims, and representing clients through ICC, ADCCAC and ad hoc arbitration.

We resolve high-value construction and engineering disputes across the UAE and wider region - representing contractors, employers, and government bodies in EPC delay claims, de-scoping disputes, performance bond calls, and disputes under FIDIC and bespoke forms of contract.

Experience

Our practice spans the full lifecycle: formation structuring (entity selection, shareholding arrangements, governance frameworks, and regulatory filings under ADGM, UAE, Saudi, and other GCC regimes); partner contribution and vesting schedules; operational governance (board composition, shareholder agreements, management delegation, and decision-making rights); profit distribution and exit mechanics.

What We Do


Much of the construction work delivered in the UAE and internationally is procured on FIDIC forms — most often the Red, Yellow and Silver Books, in both the 1999 and 2017 editions, usually with heavily negotiated particular conditions. We advise on the claims machinery these contracts create: notice requirements and time bars, the engineer's determinations, and the escalation route through dispute adjudication or avoidance boards (DAB/DAAB) into arbitration.


Contract-based disputes we regularly handle include:

  • Delay and extension of time (EOT) claims, including concurrency arguments, prolongation costs and liquidated damages for delay

  • Disruption and loss of productivity claims, where we work closely with programming and quantum experts on methods of analysis

  • Variation and measurement disputes, including omitted work and scope-change valuation

  • Defects and design liability claims, engaging both contractual warranties and statutory liability under UAE law

  • Termination and suspension disputes, including wrongful termination claims and the taking-over of incomplete works

  • Payment disputes, from interim certificate disagreements to final account claims, retention release and back-to-back subcontract payment issues

  • Security-related disputes, including calls on performance bonds and advance payment guarantees

USD 496m EPC Delay and Disruption Defence

We advised an Abu Dhabi oil and gas joint venture on the Upper Zakum oil field in preparing its defence against USD 496 million in delay, disruption and change-order claims from its EPC contractor, running a 28-week evidence and cost/time/risk analysis to build the case strategy.

We defended a government client in an ICC arbitration over its exercise of a de-scoping clause and counterclaimed for the contractor's failure to achieve the agreed sustainability rating for the project, valued at approximately AED 199 million.

In an ADCCAC arbitration over a mixed-use hotel, office and residential project, we negotiated a settlement roughly 35% below the client's maximum offer within five months of the dispute being filed.

We obtained cancellation of a sub-contract for the construction, fabrication and supply of fuel storage tanks and a diesel reticulation system, by proving the pricing in the bill of quantities contained a unilateral mistake obvious enough that the contractor must have known it could not match the tender specifications.

We advised a hospital project's subcontractors on their rights to suspend works while change-order approvals were delayed, and on the scope of their termination rights if the delay continued.




Fareya Azfar

FAQs

Can I appeal the arbitration award?

An arbitral award is generally final and not “appealable” on the merits (i.e., you normally cannot appeal because you think the tribunal got the facts or law wrong). But an arbitration award can be "challenged" by making an "application to set aside" the award before the courts of the place/seat of arbitration.

Can you enforce an award internationally?

Indeed, and most easily in comparison with the foreign enforcement of court judgments. The New York Convention of 1958, ratified by 170 countries is the cornerstone of foreign enforcement of arbitral awards. With the exception of five grounds for rejection of a foreign award, all signatory countries must review and enforce a foreign arbitration award just as they would enforce a domestic award issued in their own country. 


Who pays the costs—can I recover legal fees if I win?

The most common standard in international commercial arbitration is "costs follow the event" which means the loser pays all. However, arbitral tribunal has wide discretion in cost allocation and may not award all of the winning party's legal costs and expenses. Common reasons for not awarding full costs to a winning party are 

  1. unreasonable behavior by the winner which caused an increase in time and costs for all concerned, such as using dilatory tactics, exaggerated claims, or failing to comply with procedural rules.

  2. unreasonable attorney's fee, is another common reason. If the cost submissions show over-staffed team, unnecessary levels of seniority for tasks done, or an overly aggressive "no stone unturned" strategy, the arbitral tribunal will not award the execessive part of the costs.


How long does a typical arbitration take end-to-end?

Most rules and arbitration laws mandate that the tribunal must render its award within six months of the first hearing or its constitution, but in practice the concept of party autonomy prevails in the timeline of arbitral procedures. If both parties agree to extend the deadline of six months, it is extended until such time as the parties agree to do so, sometimes subject to permission of the scruity of arbitral institution (such as the ICC Court of Arbitration). 

Can I get urgent/interim relief (injunctions, asset freezes) in arbitration?

Yes, you can obtain urgent interim relief, including injunctions and asset freezes, in arbitration. You can secure these through an Emergency Arbitrator (before the main tribunal is formed), the Arbitral Tribunal, or National Courts. However, because arbitral tribunals lack direct coercive enforcement powers against third parties (e.g., forcing a bank to freeze an account directly) we apply for interim and freezing orders in support of arbitration to the courts at the seat of arbitration or  in jurisdictions where the opposing party's assets are located. We have successfully obtained worldwide freezing orders from local courts in the UAE, as well as foreign courts, such as the BVI, where we secured an order against both the defendant, the party to the arbitration, and a a third party escrow agent, from dealing with the assets referred to within the freezing order until the closure of the arbitration in Dubai. 


What is arbitration and how is it different from going to court?

Arbitration is a process through which parties agree to resolve the dispute(s) between them by submitting to the final and binding decision of adjudicators, called arbitrators, appointed by them directly, or a mechanism of appointment agreed in their arbitration agreement. The scope of the disputes subject to arbitration are limited and defined in scope, by reference to a certain situation, contract, deal or transaction. 


What does “seat of arbitration” mean, and why does it matter?

The seat (or situs) of arbitration is the legal place of the arbitration, not necessarily where hearings occur. The seat determines which national courts supervise the arbitration, which procedural law governs, and the framework for enforcing the award. The seat 

What if the defendant does not participate in the arbitration proceedings?

The arbitration continues 'in default'. The claimant will still have to prove the merits of their case, and the arbitral tribunal will be more inquisitive and demanding on the claimant. But the arbitration will continue in absentia. 

What are the steps of arbitration process

There is no single "universal" arbitration, but Institutional Arbitration follows a globally standardized, sequential process:

as arbitration is the product of a contract, the contract may stipulate pre-arbitration steps that must be followed before the arbitration agreement becomes operative and binding. These steps may include notices, attempts to negotiate and settle and conduct meetings.


The arbitration formally commences by sending a document known as a “request for arbitration” or a “notice to arbitrate” as per the requirements of the arbitration rules in your arbitration agreement. At this stage the opponent may respond by submitting an Answer, a jurisdictional object or a counter-claim. Advance on arbitration costs are also paid at this stage; this comprises of the administrative fee charged by the institution, and an advance on the arbitrator's fees are also deposited with the institution. 


The tribunal is formally constituted, of either three arbitrators or a sole arbitrator. A preliminary meeting takes place within a week to 30 days of the tribunal's appointment. At this meeting, all case management matters are discussed and agreed upon, procedures, timelines, expected number or even need for witnesses, experts, document productions, oral hearings etc. This is consolidated in a procedural order which becomes an initial blue print of the entire arbitration.


Proceedings start as per the steps and timelines in the procedural order in step 3. most rules stipulate that the final award be rendered no later than 6 months from the date upon which the case was referred to the Arbitral Tribunal. This date is almost always extended. Step 4 can take anywhere between 12 to 36 months depending on the complexity of the case, the approach of parties and arbitrators. 


The Final Award is issued. It is considered best practice to for tribunal to finalize the award within 3 months of closure of proceedings.


Enforcement, Challenges: The losing party normally has 30 days to file an annulment or application to set aside the award. The grounds to set aside a binding and final arbitration award are very narrow, limited to procedural failures or rare public policy breaches. Enforcement can begin after service of notice of voluntary compliance to the losing party. Enforcements can be local and foreign. 

How do you price your legal services?

Our approach to pricing legal services combines the principles of the DuPont legal model with state-of-the-art technology to offer unmatched transparency and predictability.


Task-Level Pricing Precision: Each core and variable task is assigned a specific dollar value. This isn’t a ballpark estimate, but an informed valuation based on historical data, legal expertise, and the anticipated resource investment.


Comprehensive Budgeting, Not Estimates: By pricing at the task level, we move beyond traditional, often nebulous, estimates. Instead, we create a robust, transparent budget that outlines anticipated costs, offering clients an unambiguous financial roadmap for their matters.


Data Processing: By collecting data from various integrated sources, it generates a detailed work scope for every matter down to the UTBMS task levels. Our technology continually refines our task roadmaps and associated budgets as we work on more cases.


Each fee proposal is curated after intense and thorough review, because winning a case is a business decision, not a legal one. 

bottom of page