Construction & Engineering Transactions
Rahman’s Chambers has completed almost one and a half decades 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. Our clients, either employer, joint venture partner, or contractor, are both local and foreign companies. We also handled numerous construction arbitration in recent years mostly as counsel. Our assistance is required in almost all stages of the project’s life cycle by the main contractor, subcontractor, owner, etc. Chambers and Partners 2023 Asia Pacific Guide ranked Rahman’s Chambers for Construction (Projects & Energy). Their editorial says: Rahman’s Chambers is well regarded for its legal expertise in handling EPC mandates in Bangladesh. The firm also advises on matters in the construction space, including employment concerns. The team often covers due diligence on the construction of projects. Asia Pacific 2022 added: “One source states: ‘Their solution-based and customer-oriented approach is enormously helpful in reaching the best solution.”
Rahman’s Chambers has been consecutively ranked for Corporate & Finance.
-Chambers & Partners, 2023 – 2021
“…represents a broad clientele on a range of shipping, real estate, energy, construction and employment mandates.”
-Chambers & Partners, 2020
“Advised Dongfang Electric with regard to the opening of a new office branch in Bangladesh, for the purpose of carrying out construction and engineering work. “
-Chambers & Partners, 2019
“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
Recommended for General Business law
– 2020
Practice Guide – Construction
Construction and Engineering related works are taking place at a large scale in Bangladesh in almost all sectors Legal assistance of procurement works of various construction of different public projects under G2G, PPP or other modes for bridges, power plants, LNG terminals, roads, flyover, railways, dams, seaport, river port are frequently required etc.(For additional information please see: Procurement, Bidding and Government contracts). On the other hand, legal works for power, energy and infrastructure projects which are not confined to procurement are also frequently required. (For additional information please see: Power, Energy and Infrastructure Projects). The private sectors are also involved in constructing a warehouse, factory, shopping centers, business centers etc under private initiatives Legal services in this sector is required both by the employer and contractor, whether local and foreign companies. The services often involve due diligence, preparing construction agreements, and sub-contracting agreement etc. Construction related disputes resolution is increasing due to an increase in the volume of transactions. Due to the 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 the client by providing all kind of legal support they need.
Our Completed Projects include:
Partnership Dispute
- We have advised L&T in a complex dispute involving construction of 230/33Kv substation along with a joint venture partner. The dispute involved failure of one partner to complete its obligation under the contract and options available under partnership act and project agreement.
Due Diligence
- We have conducted detailed due diligence of a commercial building located in a prominent commercial area in Dhaka, Bangladesh for the purpose of long term lease by our client. The due diligence not only involved ownership and title but also several licenses and permits required for commercial establishments under Bangladesh laws
- Advised our client Unigas in transactions involving setting up multiple Liquefied Petroleum Gas (LPG) infrastructures on the respective premises of authorized Meghna Refueling Station.
- Advised Big W over a complex Building & Construction due diligence involving legal compliance with Building code, Fire Safety, etc. of a commercial building located at a prime location in Dhaka.
- Conducted due diligence involving legal compliance of a commercial building located at a prime location in Dhaka and also drafted lease agreement
- Due diligence of large area of land for a solar power company from Mauritius
Contract & management
- We have advised our Client in procurement, preparing Power Purchase Agreement with ERES Aps (Denmark) involving rooftop PV system.
- We advised in a transaction involving Design, Supply, Installation, Assembling & Commissioning Work of Addressable Fire Alarm & Public Address & Voice Evacuation System.
- Advised Lantabur Group on transactions involving factory design, engineering, and appointing consultants.
- Advised on transactions involving Supply, Installation, Testing & Commissioning of 3150kva (11kv/0.415kv) Substation Agreement between Lantabur Apparels Ltd. & Green Power Transformer Company
- Advised a Unitex Group relating to transactions involving engineering procurement and commissioning of storage tank for supplying LPG to 20,000 apartments of a housing society.
- Advised Unitex LP Gas Ltd in the legal process of appointing contractor, DEC S.A. for procurement, supply, transportation, supervision & commissioning of LPG loading/unloading under a subsea project, to be operated with Umbilical cord & Hydraulic Power Unit.
- Chambers’ construction department advised an LGP terminal on transactions involving the construction of the LPG station and supply contract.
- Advised a leading Japanese company and drafted construction agreement for the boundary, soil improvement, water excavation, etc. work involving their existing factory in an Export Processing Zone.
- Drafted subcontract agreement for the importation of crushed stone for different projects in Chittagong for a Chinese company.
- Provided legal consultancy involving architectural design & drawing work of a construction project for a renowned architectural firm.
- Provided legal consultancy & drafted master agreement for construction of several projects, and also individual project agreement for a subsidiary of Pou Chen Group, Bangladesh Pou Hung Industrial Ltd., at Karnaphuli Export Processing Zone (KEPZ), Chittagong.
- Advised & drafted agreement regarding the architectural & structural project for the employer for a 25 storied hospital.
- Drafting construction agreement for building a warehouse for a Chinese Automotive.
EPC/O & M
- We have conducted detailed due diligence on a commercial building located in a prominent commercial area in Dhaka, Bangladesh for the purpose of long-term lease by our client. The due diligence not only involved ownership and title but also several licenses and permits required for commercial establishments under Bangladesh laws.
- We have advised Unitex Steel Mills Ltd in finalizing a deal with an EPC contractor for the construction of steel-made structure for its new project.
- Advised on transactions involving EPC of pre-fabricated steel structure dying factory for Lantabur Group executed with MARN Steel.
- We advised SDS International Limited, a concern of GILDAN Activewear, on an EPC contract relating to civil engineering.
- Successfully advised an MNC on matters involving appointing an EPC contractor for the construction of a steel building for their project at Savar.
- Drafted EPC contract for a major Japanese company as employer for construction of captive power plant.
- Legal services involving the transfer of construction equipment for an EPC contractor from the employer
- Legal consultancy involving EPC and O & M agreement for a major power plant of EGCB.
DESIGN AND DRAWING
- We have advised our Client, Unitex Group, in a transaction involving the architectural design of civil, electrical, plumbing, etc. works in a civil construction project.
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 particularly 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 energy sectors, where contracts are often multinational, long duration and amount to hundreds of millions of dollars, a contract manager’s role is crucial for optimising and securing the contractual cycle in major projects. It’s a complex and risky job cannot be overlooked. The following are covered:
- Overall tracking for the duration of a contract cycles
- Securing compliance by constant presence and attention
- Advising based extensive legal knowledge on how to follow rules and limitations set out in the contract, laws and regulations
- Securing overall the project’s legal security etc.
We draft contract signed among shareholders, joint venture partners. Besides, in commercial projects, we draft the main contract signed between the contractor and owner.
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 subcontractors from locally or from abroad. We draft agreement to be signed with subcontractors making it suitable for the project.
EPC contract & in major project O & M contract is common in Bangladesh. EPC contract is sometimes known as a turnkey construction contract. Employer after imposing significant liabilities on the contractor for construction delivers complete facilities to the employer. The firm advises client over important terms and conditions, for example, liquidated damages for delay, timing, force majeure, insurance dispute resolution etc.
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.
Related Resources - Library
We have a rich library with a mixture of printed and online legal databases. We have printed version of All England Commercial Cases, Indian Digest of Supreme Court cases, Yearbook Commercial Arbitration of Wolter Kluwer and most law reports of Bangladesh. We subscribe to the online legal database Manuputra providing access to most reputed law reports. Read more