Construction & Engineering


As a developing country, Construction and Engineering  related works are taking place at a large scale in Bangladesh in almost all sectors. Construction of different public projects like bridges, power plants, LNG terminals, roads, flyover, railways, dams, seaport, river port etc. is going on at a faster pace. Similarly private sector is also involved in constructing shopping centers, amusement parks, business centers etc. Legal services in this sector is required both by the employer and contractor, whether local and foreign companies. The services often involves due diligence, preparing few construction agreements, sub-contracting agreement, tender documents, bid documents,  negotiation of bid etc. Construction related disputes resolution is increasing due to increase in the volume of transactions. Due to presence of arbitration clauses in construction agreement and applicable laws, the matters often settled through arbitration and mediation.  As a one of the leading law firm of the country, we are engaged in helping client by providing all kind of legal support they need.

Rahman’s Chambers with respected Chinese clients after signing construction agreement drafted by Chambers.

“Their response times are excellent and they make you feel generally very well informed.”

-Chambers & Partners, 2018

“The ‘very responsible, responsive and knowledgeable’ Mohammed Forrukh Rahman heads the firm…”

-Legal 500, 2018

 

 

Rahman’s Chambers completed its ninth year in serving clients in the area of construction and Engineering.  We are experienced, competent and capable of dealing with any issues involving this area of practice. We have completed a number of due diligence, prepared few construction agreements e.g. EPC, PPA, shipbuilding, Building construction etc.  Our clients, either employer or contractor, are both local and foreign companies. We handled a number of construction arbitration in recent years mostly as counsel.

Our assistance is often required in almost all stages of the project’s life cycle by main contractor, subcontractor, owner etc.

Legal due diligence is a vital step for working in a construction and engineering project in Bangladesh. Project often involves large area of land in that case checking land title, genuineness of documents, possession and past history is must in Bangladeshi context.

We draft contract for shareholders, joint venture partners. Besides, in commercial project we draft the main contract for contractor and owner.

In public projects, we assist client by vetting tender documents and often preparing it. We have also prepare crucial legal instruments, letter of Authority, power of Attorney related with tender documents and bid etc.

Our completed projects are:

  • Due diligence of large area of land for a solar power company from Mauritius

  • Legal services involving transfer of construction equipment for a EPC contractor from employer

  • Drafting construction agreement for  building warehouse for a Chinese Automotive.

  • Vetting, negotiating of PPA, LLA, IA for a Malaysian company bidding for power projects

  • Appeared in court as local counsel in International Arbitration involving Ship building project for German buyer.

  • Vetted agreement relating to a Dam projects for Chinese company.

  • Litigation involving physibility project for Paira Sea Port for a Korean company.

  • Legal consultancy involving EPC and O & M agreement for a major power plant of EGCB.

  • Several litigation involving IPP, Small IPP and rental contracts in High court and lower court.

In recent years the chambers have developed reasonable expertise in the area of Construction and Engineering. We assist client in both Commercial projects as well as public projects. Our assistance is often required in almost all stages of the project’s life cycle by main contractor, subcontractor, owner, banks, etc. as The detailed nature of such assistance is provided below

Legal due diligence is a vital step for working in a construction and engineering project in Bangladesh. It requires in the area of Taxation in particular available incentives, etc. Besides for import and export of capital machinery temporary import, customs, VAT, due diligence is very important. Clients often request other types of due diligence for example- Company, Land etc. In recent years we have advised to CHWE, UNION Resource, NEPC etc.

We draft contract signed among shareholders, joint venture partners. Besides, in commercial project we draft the main contract signed between contractor and owner.

In public projects, we assist client by vetting tender documents and suggest necessary amendment required for procuring entity in pre-bid meeting we have also prepare crucial legal instruments, letter of Authority, power of Attorney, joint venture agreement etc. We also help by participating in bid evaluation meetings by providing legal clarification and explaining legal position of bid documents. Our service includes: vet notification of awards; assist clients in challenging any objectionable decision as per Public Procurement Rules to the appropriate forum; reviewing NOA etc. Mr. Rahman has gained significant knowledge and expertise while working as legal consultant for Power Cell, Ministry of Power, Energy and Mineral Resources for 1.5 years on procurement issues.

The Firms vet term loan agreement, project finance documents e.g.

  • Escrow agreement,
  • Share retention agreement,
  • Loan security documents, etc.

Mr. Rahman’s expertise developed in Banking matters while advising in Central Bank for last 10 years as an advising other Banks for similar duration.

The contracts with Architect and Engineers are key agreements. We vet such agreements on a regular basis.

Major projects require many sub contractors from locally or from abroad. We draft agreement to be signed with sub contractors making it suitable for the project.

In infrastructure, energy projects EPC contract is common in Bangladesh. Chambers already advised client on engineering, procurement, & construction EPC contract for a major power sector company. EPC contract is sometimes known as turnkey construction contract. Employer after imposing significant liabilities on contractor for construction delivers complete facilities to the employer. The firm has vetted important terms and conditions, for example liquidated damages for delay, timing, force majeure, insurance dispute resolution etc. Furthermore, the firm has experience in advising on O&M contract with a power sector project company.

In the construction engineering project the liabilities for the employer towards employee while working at the workplace with regard to personal injury is regulated under the labour laws of Bangladesh. Our ADR and Tribunals department regularly, handle issues involving consoling with labour and defending clients in cases filed in labour court involving personal injury.

The Chambers has strong team of lawyers who regularly advise employers, on a several employment issues. Both for labor and non labor, the same law and practice is applicable for construction and engineering projects.

In construction matter, arbitration clause is generally common; the Chamber has experience of advising clients in major international arbitration in a power sector project. Besides Mr. Rahman, appeared as a counsel in local arbitration over disputes involving notification of award, fuel cost etc in 210 MW power project. Chambers presently representing a construction company in a local arbitration and also an employer in another arbitration over dispute involving delaying construction, payment, etc. for example: Knight Frank, Quality Timber, Union Resources, CHWE etc.

  • Advising on all construction project documentation, including EPC and O&M contracts, for the design, construction and commissioning.
  • Advice on project specific insurance requirements and exposure
  • Advice on Standard Form Contracts
  • Drafting other project specific contracts
  • Construction and engineering sector mergers, acquisitions and disposals, and due diligences
  • Construction and engineering claims, and dispute resolution
  • Acting as counsel for international arbitration

Our Related Clients


  • Zhongmei Engineering Group Ltd., China
  • Electricity Generation Company Bangladesh Ltd
  • Kunhwa Engineering & Consulting Co. Ltd, South Korea
  • Komrowski Maritim GmbH, Germany
  • First Northeast Electric Power Engineering Co.(NEPC) No.1 & 3
  • NEPC International Limited
  • The First Engineering Bureau of Henan Water Conservancy(CHWE)
  • Samsung Engineering Company Ltd.
  • Union Resources & Engineering Company Limited (UREC) (Bangladesh Liaison Office)
  • Knight Frank Development Ltd
  • Quality Timber BD Ltd