Construction & Engineering
At Rahman’s Chambers, our Construction & Engineering practice stands at the forefront of Bangladesh’s dynamic building landscape, offering sophisticated legal counsel for every stage of project execution. We guide clients through the complexities of physical construction and engineering works, from groundbreaking to operational handover. Our expertise is rooted in a deep understanding of contractual frameworks, ensuring seamless project delivery and robust risk management for both local and international stakeholders involved in commercial, industrial, and specialized construction. Chambers and Partners 2024 Asia Pacific Guide ranked Rahman’s Chambers consecutively for 2 years for Construction (Projects & Energy). Their editorial says: Rahman’s Chambers is well regarded for its legal expertise in handling EPC and O&M mandates in Bangladesh. The firm is experienced in matters in the construction space, assisting with due diligence and tenders, as well as employment concerns. The team also handles disputes relating to projects. Asia Pacific 2024 also added: ”Rahman’s Chambers’ experts are professionals and experienced at handling complex issues. They are familiar with international and domestic law related to the projects.”
Rahman’s Chambers has been consecutively ranked for seven years for Corporate & Finance.
-Chambers & Partners, 2021 – 2025
“…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
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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 Services:
- Main Construction Contract Administration & Management:
- Advising on the interpretation, administration, and ongoing compliance of executed main construction contracts (e.g., Lump Sum, Unit Rate, Cost-Plus, Design-Build).
- Legal counsel on managing variations, change orders, delays, extensions of time claims, and payment applications during the construction phase.
- EPC (Engineering, Procurement, and Construction) Contract Implementation Advisory:
- Providing ongoing legal support related to the execution and performance of signed EPC contracts, ensuring adherence to technical specifications, procurement processes for materials/equipment, and construction milestones.
- Advising on performance guarantees, liquidated damages, and force majeure events as they arise during project execution.
- Operation & Maintenance (O&M) Agreement Implementation:
- Legal support during the operational phase governed by O&M agreements, including compliance with performance metrics, maintenance schedules, and regulatory standards.
- Subcontract Management & Performance:
- Drafting and vetting subcontract agreements that flow down from the main contract.
- Advising on legal issues arising from executed subcontracts, including performance, payment, and default.
- Supply & Procurement Contracts (for direct construction inputs):
- Legal advice on the execution and performance of agreements for the supply and installation of specific equipment and materials directly integrated into the construction.
- Design & Consultancy Agreement Management:
- Advising on the performance and interpretation of executed agreements with architects, engineers, and other design/technical consultants during the construction phase.
- Risk Management & Mitigation (during execution):
- Ongoing advice on identifying, mitigating, and managing legal risks encountered during the construction and early operational phases.
- Project Close-Out & Handover:
- Advising on legal aspects of substantial completion, final acceptance, defect liability periods, and project handover procedures.
- Ancillary Agreements & Advisory (Execution-focused):
- Legal services involving the transfer or lease of construction equipment relevant to ongoing projects.
- General legal consultancy on day-to-day legal issues arising directly on construction sites.
Our Completed works include:
Contract & management
- We have acted for our client in advising and assisting the project company for the construction of an elevated expressway in Bangladesh on various issues pertaining to the public-private partnership (PPP) project contract documents, related laws, negotiation with the contracting Authority, etc. in Bangladesh.
- We have successfully acted for our client one of the sub-contractors of Matarbari Ultra Super Critical Coal Fired Power Plant and successfully advised on issues of interpretation of the International Treaty, VAT, and related disputes.
- We successfully acted and advised our client a major engineering and construction company in the Matarbari Coal Power Plant project on issues and disputes related to heavy machinery and equipment from the local supplier.
- 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 a leading Bangladeshi knitwear manufacturer and exporter 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 a leading Bangladeshi knitwear manufacturer & a prominent EPC firm specializing in power generation and transmission solutions.
- Advised a Group relating to transactions involving engineering procurement and commissioning of storage tank for supplying LPG to 20,000 apartments of a housing society.
- Advised a LP Gas company 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 the Bangladeshi subsidiary of a major multinational footwear manufacturer, 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 a 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 a leading Bangladeshi knitwear manufacturer executed with MARN Steel.
- We advised a prominent Bangladeshi garment manufacturer, 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, a 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