DISPUTE – unavoidable in the construction industry!

The dispute resolution process has a huge impact on the Indian economy and particularly on the construction sector as disputes are almost inevitable in this sector considering the mega scale of the projects, the amount of capital invested in the construction projects, complexity of the projects, sovereignty of the employers, bureaucracy of the regulatory bodies and the multiple stake holders that influence the performance of the construction contracts.

Infrastructure projects in India are plagued with schedule delays and some of the frequent causes for these delays are change of project’s scope, delay in handing over of construction site, material difference between the actual data and information provided at the time of signing of contracts on physical aspects of the project - the foundations and soil characteristics, delay in payment by the employers and force majeure occurrences. Cost overrun on the contractors is an obvious consequence of the delay and contractors’ claims for additional compensation are mostly declined by the employers that lead to dispute between the contracting parties.

Project contracts have the provisions to identify causations of change and delay and also provide for mechanisms to deal with such changes and delays. However, when the time actually comes to ascertain the causes, determine the responsible party/parties and deal with the consequences of the changes and move forward, the contracting parties often find the contractual mechanisms inadequate and/or ineffective due to attempts by the parties to proclaim innocence to avoid consequences of being held responsible for having caused the changes. Resultantly, the contracting parties fail to resolve the issues between them as per the provisions of contract, and get into dispute mode and seek resolution through arbitration and/or litigation.

These rising incidences of disputes have significant time and cost implications, not only for the contracting parties, but also for the project at large and its beneficiaries. Despite the fact that Indian judicial system is advancing progressively in the field of arbitration, the total amount of investment of the construction industry that is tied up in arbitration is significant.

 

OUR EXPERT SERVICES – how we can help you

Our expert team has diverse experience and capabilities that allow them to address each client’s specific issues from the perspective of the unique demands of construction arbitration and litigation.

Our expert claim and dispute handling team will
  • analyse claim letters;
  • identify potential claims not raised and advise on further claims (if first approach by client is at arbitration stage);
  • advise client to initiate mediation, conciliation, DAB – if applicable;
  • advise and assist client to invoke arbitration if mediation, conciliation fails;
  • assist in Arbitration and / or court proceedings
    • advise client to invoke arbitration by contractual and / or statutory provisions
    • assist client in obtaining interim protection orders;
    • assist client in conducting arbitration proceedings;
    • assist client in enforcing awards;
    • assist client to challenge award, if needed