Construction & Infrastructure Dispute Resolution

Rahman’s Chambers has long experience of assisting both the public sector & private sector entities in the constriction sector in resolving disputes. Our involvement has been found crucial at procurement, awarding, implementation stages. While at the procurement stages, disputes are resolved at the High court or CPTU, at awarding and implementation stages the disputes are mostly resolved by arbitration or mediation.

Chambers and Partners 2023 Asia Pacific Guide ranked Rahman’s Chambers for Construction ( Projects & Energy). Their editorial says:  The team often covers due diligence on the construction of projects and also handles disputes relating to projects. Some of its key clients are Lantabur, Unitex and Penta-Ocean Construction. Asia Pacific 2022 added: “One source states: ‘Their solution-based and customer-oriented approach is enormously helpful in reaching the best solution.”

Chambers and Partners2023 Asia Pacific Guide ranked Rahman’s Chambers for Dispute Resolution. Their editorial says: Rahman’s Chambers houses a well-regarded litigation practice in Bangladesh with significant experience in construction disputes. The team also assists clients with arbitration proceedings.

Rahman’s Chambers has been ranked for Dispute Resolution for the second time, in addition to being 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

We are recommended for Business law by Asialaw 2021.

We have a total of one Advocate enrolled in the Appellate Division, seven Advocates enrolled in the High Court, and four Advocates enrolled in the District Court.

Our completed works are: 

BUILDING 

  • Commenced arbitration proceeding against a developer for failure to construct & hand over a residential apartment building located in a prime location in Dhaka claiming loss & damages as well as specific relief of registration of apartment in the name of the claimant.
  • In 2018 we have successfully completed arbitration for Knight Frank Development Ltd. in the area of construction & engineering. We represented the developer before the tribunal and argued on legal implications of Joint Venture (JV) Agreements, Mortgage, Power of Attorney (POA) and several contractual terms and conditions involving termination, force majeure, delay, contractual remedies etc.
  • We have completed arbitration for Quality Timber Ltd. in the area of construction & engineering. We represented the landowner before the tribunal and argued on legal implications of Joint Venture (JV) Agreements, Power of Attorney (POA), Mortgage and several contractual terms and conditions involving termination, contractual remedies etc.
  • Successful commenced of post arbitral award enforcement suit involving a complex construction arbitration.

POWER & ENERGY 

  • 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.
  • We have advised our client, Dongfang Electric, on a complex disputes involving Engineering, Design, Manufacturing, Inspection, Supply, Installation, Erection, Testing & Commissioning, performance test and related civil and building works including necessary auxiliaries and ancillaries of 150 MW + 10% Simple Cycle (HSD based) Power Plant Project, in connection to the location of the site which was causing several risks with air traffic movement and possible alternative options as per the contract.
  • Chambers have advised one a complex disputes involving Matarbari Ultra Super Critical Coal-Fired Power Project on transactions and agreements involving the projects.
  • Advised and also appeared as a counsel for a major power sector at different forums including arbitral tribunal, high court & lower court involving failure to ensure dependable & contractual capacity and associated liquidated damages involving a 105 MW diesel-fired plant at Bheramara, Kustia and a 105 MW furnace oil-fired plant at Noapara, Kustia.
  • Resolution of Dispute between Power Division and Harbin Power Engineering Company Limited on 100 MW Simple Cycle Gas Turbine Power Plant involving execution of contract and return of Bank Guarantee.
  • Legal consultant on an international Arbitration between Smith Co Gen. (BD) Ltd vs. BPDB and GOB on the execution of foreign award passed by an arbitral tribunal constituted under ICC rules involving failure to get consent and approval for power project & failure to arrange plant, financial closing, etc.
  • Successfully handled Writ petition 3512/2009- Energy Prima Limited vs. BPDB, relating to a power plant contracted on a rental basis, where complex claims over customs exemption as per Implementation Agreement, rights and liabilities arising out of force majeure, delay, liquidated damages etc. under PPA are litigated.
  • We have successfully represented Bangladesh Power Development Board (BPDB) in a number of proceedings arising out of local arbitration pending both in District Court and High Court Division against Summit Power Limited and Quantum Power Limited both involving interim injunction on payment on deduction of liquidated damages under power purchase agreement of several IPP Project.

ROAD/BRIDGE 

  • We have advised China Road Bridge Corporation (CRBC) Bangladesh Limited in resolving a construction-related payment dispute involving pile driving work.

TERMINAL 

  • We advised on a complex disputes involving EPC contract-related claim in connection with the construction of LPG Marine Terminal by a South Korean Engineering company, involving supply and installation of defective submarine hose.

ECONOMIC ZONE 

  • We have initiated proceedings for recovering outstanding due against sub-contractor engaged by a major EPC contractor working for development of Mirsarai Economic Zone project.

Practice Guide – Construction

In recent years there has been an increasing amount of public spending on infrastructure & development projects like building new roads, highways, power plants, bridges & flyovers, land and seaports, rail links, multipurpose overpasses, etc. The said works are carried out by local and international contractors having a high level of expertise in general. Depending on the nature of the project, sector & parties involved, the mode of procurement can be very different. Generally, as per the policy and guidelines of the Public-Private Partnership Authority (PPPA) and other procurement rules & regulations, procurement can be classified as follows: G2G partnership for PPP; PPP projects and Non-PPP projects. Depending on the “principal approval” of ERD, the concurrence of concerned law ministry & ”principal approval” of PPPA a project can be G2G implemented PPP project (solicited/unsolicited) or only PPP project (solicited/unsolicited). The bidding process for the solicited project (whether for PPP or non-PPP) may also vary depending on the approval. Participating in bid complying timetables & also preparing documents as per instruction of tender documents, preparing an unsolicited proposal, etc. is a very challenging work both for national & international bidders. Relevant law comes into play when it comes to bidding/submitting proposal, e.g., Policy for Implementing PPP Projects through Government to Government (G2G) Partnership, 2017, Procurement Guidelines for PPP Projects, 2016, Guidelines for Unsolicited Proposals, 2016, Public Procurement Act 2006, Public Procurement Rules, etc., and hence require legal support. Legal services are often required for the negotiation of contractual terms and also in taking timely steps and filing complain or other lawful recourse while evaluation is taking place in a highly competitive environment.

Our honorable company bench, in 2021 in a case involving an infrastructure project, set aside the arbitral award of an international arbitration on the ground that the arbitral tribunal reached the award based on perverse fact, which is contrary to our law. The honorable court also confirmed that a majority award is binding so long as the award provides a reason why the third arbitrator failed to consent. This will speed up the delivery of arbitral award, as in practice the tribunal tends to wait for a consensus award and often cause unnecessary delay. On the other hand, parties are also required to pay attention to the selection of arbitrator as local arbitrator for international arbitration often preferable as they are more aware of local customs and practices, this often helps in the fact-finding exercise.

Complex construction disputes involving infrastructure projects are in rise. Responsibility of the employer and the bidder and successful tenderer on conducting pre-bid feasibility study of the project site is often confusing as the tender document often do not clearly address the issue. If a major flaw is found at later stages on selection of site etc, both employer and contractor tend to blame each other. Parties or their legal representatives are required to meticulously read the terms and condition of the tender document and identify their duties and obligations. Any vagueness is required to be resolved at initial stages.

Our services include

  • Pre bidding dispute resolution
  • Bidding stage dispute resolution
  • Post bid dispute resolution
  • Writ Petitions & Judicial Review
  • Infrastructure Contractual disputes
  • Construction contract disputes
  • Construction and Infrastructure arbitration
  • Construction and Infrastructure litigation

Our Downloads

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

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