Construction Arbitration

The engineering and construction practice’s arbitration disputes team advises on disputes emanating out of all types of construction, engineering, projects and procurement matters including – but not limited to – commencing and defending variation claims, delay and disruption claims, defects claims, negligence claims, final account and payment issues, dilapidation claims, projects disputes, disputes over performance security, imposition of liquidated damages, termination issues as well as technical disputes.

The team comprises seasoned lawyers with extensive experience of representing clients in complex arbitration proceedings, both domestically and internationally.

Hadef & Partners has a proven track record of successfully handling construction arbitrations under various institutional rules, such as those of the Dubai International Arbitration Centre (DIAC), the International Chamber of Commerce (ICC), seated in the region under various governing laws. The team is also now being instructed on matters involving arbitrateAD, the newest arbitral institution in the UAE.

• Successfully represented a Claimant Subcontractor against the Main Contractor (an unincorporated joint venture) in a DIAC arbitration, governed by UAE law. Issues in dispute related to the validity of a purported termination, the valuation of a final account, delay and prolongation as well as illegal imposition of liquidated damages The matter was further complicated by the fact that one of the joint venture partners encashed the Claimant’s bonds and also filed for liquidation. The dispute highlights the strength of our practice because various ancillary issues required court litigation expertise in parallel to the arbitration proceedings as well as a clear knowledge of the practical realities of the local laws.
• Successfully represented a major contracting company in two arbitrations. First, as the Defendant Main Contractor in a DIAC arbitration, governed by UAE law, commenced by a Subcontractor. The issue related to the validity and applicability of a back-to back clause with a correlating pay-when-paid clause in a subcontract agreement. Second, as claimant in an ICC arbitration against a developer in relation to failure to pay, delay issues, technical issues concerning works provided and the imposition of liquidated damages.
• Successfully represented the joint venture of Singaporean and Malaysian entities and local UAE contractors in a DIAC arbitration, governed by UAE law, related to Nad Al Sheba Racecourse Project. Issues related to delay & disruption, variations, progress of works and design flaws.
• Successfully represented a global provider of water management solutions in a DIAC arbitration in relation to a concession for the development, financing, design, construction, commissioning, completion and maintenance of a reverse osmosis desalination plant in the UAE.
• Successfully represented an international multinational conglomerate and a local subsidiary entity in a DIAC arbitration concerning the termination of a construction contract relating to the construction of a Dubai Government Entity’s headquarters. The issues related to valuation of completed works, delays and wrongful encashment of bond.
• Successfully represented a UAE construction company in an ad hoc arbitration using Dubai Municipality Rules against a government entity. The claims (which also required dealing with local Court challenges) related to outstanding amounts under a contract to enhance the breakwaters along a public beach line.
• Successfully represented a global environmental and design, construction and engineering consultant in an ICC arbitration involving delay and cost overrun issues in the construction of three reverse osmosis plants in the UAE.
• Successfully represented an Abu Dhabi developer in an ICC arbitration, governed by English law, in relation to a claim on a surety bond.
• Successfully represented an Abu Dhabi developer of a commercial building on the Abu Dhabi Cornishe in an ADCCAC arbitration against a contractor and a subcontractor in relation to structural design defects.
• Successfully acted for a construction company in an ICC arbitration concerning a subcontract for the Stage 2 of a Rail Network project with a joint venture.