Introduction: Why Building Contract Advisory Is the Backbone of Project Success
In today’s construction landscape—across Saudi Arabia, the UAE, Egypt, Qatar, and worldwide—building projects are more complex, multi-layered, and risk-sensitive than ever before. Developers and contractors must navigate demanding schedules, rising material costs, shifting design expectations, subcontractor coordination, regulatory compliance, and increasing client scrutiny.
In this environment, building contracts are not simply legal documents—they are strategic instruments that determine the stability, profitability, and timely delivery of the project. When a contract is poorly drafted or insufficiently vetted, it becomes a magnet for disputes, often leading to costly delays, claims, or even termination.
This is why more developers, general contractors, and subcontractors rely on specialized building contract advisory, contract vetting, and dispute support services. At LEXARB, our legal team provides end-to-end support to ensure that building contracts protect your interests from day one—and that if disputes arise, you are equipped with the strongest possible legal and evidentiary position.
Understanding the Importance of Building Contract Advisory
A building contract governs how the project will proceed, what standards will apply, who carries which risks, and how disputes will be resolved. Effective advisory services cover the entire lifecycle of the contract—from drafting to execution to post-completion obligations.
- Drafting and Reviewing Contracts with Precision
Poor drafting is the number one cause of disputes in construction.
LEXARB ensures every clause is clear, enforceable, and aligned with:
- Local laws (Saudi Civil Transactions Law, UAE Construction Regulations, Egyptian Civil Code, etc.)
- International standards (FIDIC Red/Yellow Book, Design-Build models, NEC, bespoke agreements)
- The project’s commercial realities
We draft and vet contracts addressing:
- Scope of works
- Quality and compliance standards
- Time-related obligations
- Payment terms and valuation
- Liquidated damages and performance security
- Warranty and defects liability
- Health, safety, and environmental requirements
- Design and supervision responsibilities
- Identifying and Mitigating Risks
Risk allocation is the heart of every construction contract.
We ensure risks are clearly assigned regarding:
- Ground conditions
- Variations
- Delays
- Force majeure events
- Interface responsibilities
- Third-party involvement
Our legal team provides practical strategies to mitigate these risks early.
- Ensuring Contractual Alignment Between Parties
Misalignment between employer requirements, consultant specifications, and contractor obligations is a major cause of disputes.
LEXARB reviews technical and legal documents to ensure:
- No contradictions
- No ambiguous references
- No missing obligations
- No overlapping scopes
This alignment sets a stable foundation for the project.
Comprehensive Contract Vetting: What LEXARB Examines
Contract vetting is not a simple proofreading exercise—it is strategic risk analysis. Our experts examine the contract from legal, commercial, and technical angles.
- Legality and Enforceability
We assess compliance with applicable national laws and address enforceability risks that could invalidate contractual clauses.
- Commercial Viability
LEXARB evaluates whether the contractual obligations are practical and commercially fair.
- Technical Consistency
We ensure technical specifications match the contract’s general terms—no hidden risks or silent obligations.
- Dispute Resolution Preparedness
Our team verifies:
- Arbitration clause quality
- Institution selection (SCCA, ICC, LCIA, DIAC, CRCICA, UNCITRAL)
- Seat and governing law
- Multi-tier dispute resolution procedures
- Red Flags and Hidden Liabilities
We highlight high-risk clauses including:
- Uncapped liabilities
- Excessive liquidated damages
- Strict time bars
- Burdensome notice requirements
- Ill-defined deliverables
- Overreaching indemnities
This allows clients to renegotiate or revise key areas before signing.
How Legal Disputes Arise in Building Contracts
Even with strong contracts, disputes may arise due to:
- Delays and disruptions
- Variations and valuation disagreements
- Defective work and quality issues
- Payment disputes
- Termination for default or convenience
- Misinterpretation of technical documents
- Regulatory or safety breaches
LEXARB supports clients with strategic dispute resolution across all stages.
LEXARB’s Dispute Support Services: Protecting Clients Through Every Conflict
- Early Dispute Avoidance and Negotiation
We intervene early to prevent escalation by:
- Reviewing correspondence
- Advising on notices and compliance
- Conducting contractual audits
- Preparing negotiation strategies
- Claims Preparation and Defense
LEXARB:
- Drafts delay claims and EOT submissions
- Builds entitlement cases
- Prepares quantum analyses
- Coordinates expert reports
- Defends against unfounded claims
- Mediation Support
We represent clients in formal and informal mediation processes to preserve commercial relationships and avoid arbitration.
- Arbitration Representation
Our core strength lies in international arbitration.
We represent clients under:
- ICC
- LCIA
- DIAC
- SCCA
- CRCICA
- UNCITRAL rules
LEXARB’s multilingual team ensures seamless coordination with international contractors and consultants.
- Litigation Support (When Applicable)
If a dispute reaches national courts, we guide clients in coordination with trusted local counsel.
Practical Scenario: How Contract Vetting Saved a Developer Millions
A developer in Riyadh was about to sign a building contract for a commercial complex. The contract was based on a consultant’s template and appeared standard.
LEXARB was asked to review it.
During the vetting process we discovered:
- The contractor had unrestricted rights to claim variations without strict documentation rules.
- Time bars unintentionally limited the employer’s ability to issue notices.
- The dispute clause appointed an arbitration seat unfavorable for local enforcement.
- The technical annexes contradicted the contract regarding testing procedures.
With these findings, we renegotiated key sections.
Outcome:
- Reduced the developer’s risk exposure dramatically
- Avoided future disputes on variations
- Secured a neutral arbitration seat
- Ensured technical accuracy and consistency
This proactive legal intervention prevented multimillion-riyal disputes that would have emerged years later.
Anecdote: A Single Undefined Word Caused Months of Arbitration
In a dispute involving a residential construction project, both parties battled over the term “substantial completion.”
The contract never defined it.
The employer believed it required:
- full operational readiness,
- successful testing,
- and compliance with all specifications.
The contractor believed it meant:
- completion of structural works only.
Because the definition was missing, a simple milestone disagreement evolved into an expensive arbitration.
LEXARB ultimately resolved the case, but the lesson remains clear:
One undefined term can shift an entire project into dispute mode.
Why Developers and Contractors Choose LEXARB
- Holistic Understanding of Construction Law and Engineering
Our lawyers understand the technical aspects of building projects, allowing us to foresee issues that purely legal teams may miss.
- Multilingual Expertise
We work in:
- English
- Arabic
- French
- Russian
This makes us ideal for international or joint venture projects.
- Proven Arbitration Strength
LEXARB has acted in high-value disputes involving infrastructure, real estate, industrial facilities, and government projects.
- Tailored Advisory Services
Every project is unique—we adapt our advice to your commercial and operational realities.
- Preventive Approach
We focus on avoiding disputes rather than merely resolving them.
Conclusion: Strong Contracts and Strategic Support Are the Foundation of Successful Building Projects
Building projects succeed when contracts are clear, risks are managed, and disputes are resolved quickly.
Through comprehensive advisory, contract vetting, and dispute support, LEXARB ensures that developers and contractors are protected at every stage.
Our goal is simple:
to safeguard your project, budget, timelines, and business relationships.
If you need professional contract advisory, risk-focused contract vetting, or strong legal support for building disputes, reach out to LEXARB for a confidential consultation.
Our legal team stands ready to protect your interests with precision and expertise.