Across the GCC, Middle East, North Africa, and many regions undergoing rapid development, government-led initiatives are accelerating at an unprecedented pace. Roads, railways, water treatment facilities, ports, power plants, logistics hubs, digital infrastructure, and national transformation projects are reshaping economies.
Such projects are typically governed by strict procurement laws, layered administrative processes, and high levels of regulatory oversight. These safeguards protect the public interest and ensure fairness, but they also create fertile ground for disputes.
From bidding challenges to disputes over variations, delays, performance issues, and contract terminations, government project disputes can be among the most complex and sensitive in the construction and public procurement sectors.
As LEXARB, a leading firm in international arbitration and public-sector dispute resolution, we support government authorities, contractors, PPP stakeholders, consultants, and international consortiums in navigating these disputes with precision, strategy, and legal strength.
Why Government Project Disputes Require Specialized Resolution Approaches
Government projects differ significantly from private-sector contracts because of their:
Regulatory Complexity
Government procurement is governed by:
- Saudi Arabia’s Government Tenders and Procurement Law (GTPL),
- UAE Federal Procurement Regulations,
- Egypt’s Law No. 182/2018 on public contracts,
- Qatar’s Tenders and Procurement Law,
- Sector-specific regulations (transport, water, energy, environment).
These frameworks impose strict compliance, making disputes procedural as much as substantive.
Multi-Stakeholder Involvement
Government contracts typically involve:
- ministries or municipal authorities,
- external consultants,
- international contractors,
- PPP entities,
- government auditors,
- supervisory commissions.
This increases the likelihood of conflicting interpretations and obligations.
Public Accountability
Delays or disruptions can affect:
- essential services,
- public safety,
- political commitments,
- national development timelines.
Dispute resolution must therefore balance legal accuracy with public interest considerations.
Budgetary Oversight
Payments, variations, and claims are subject to heightened scrutiny, often involving:
- audit rules,
- state financial controls,
- strict compliance documentation.
Government approval processes may cause delays that influence project performance.
Common Types of Disputes in Government Projects and Tenders
Tender Evaluation and Award Disputes
Challenges include:
- unfair or incorrect bid evaluation,
- wrongful disqualification of bidders,
- inconsistencies in the scoring process,
- breach of transparency principles.
Contract Interpretation Disputes
Government contracts often contain dense legal and technical language, leading to divergent interpretations.
Delay and Disruption Claims
Delays may stem from:
- late approvals,
- regulatory changes,
- restricted access to project sites,
- design changes,
- external political decisions,
- land acquisition issues.
Determining entitlement in such cases requires expert delay analysis and a strong understanding of contract terms.
Variations and Change Orders
Disputes arise when:
- variations exceed budgetary allowances,
- approvals take too long,
- scope changes are disputed.
Payment and Valuation Disputes
These are common due to strict public-sector auditing systems.
Termination for Public Interest
This is a unique element in government contracts, used when:
- the project becomes nonviable,
- national priorities shift,
- policy or legal frameworks change.
Defects and Performance Failures
Government agencies often enforce higher standards of compliance, leading to disputes over:
- quality,
- operational readiness,
- environmental or safety compliance.
LEXARB’s Dispute Resolution Framework for Government Projects
Early Dispute Identification and Prevention
LEXARB provides proactive advice to:
- identify early red flags,
- ensure compliance with notice requirements,
- guide project communication,
- conduct contract compliance audits.
Preventing a dispute can save years of arbitration.
Claims Preparation and Defense
We assist clients in preparing and defending against claims involving:
- EOT (extension of time),
- disruption and prolongation costs,
- variations and remeasurements,
- delays caused by regulatory decisions.
Our approach includes:
- forensic schedule analysis,
- quantum evaluation,
- technical expert coordination.
Mediation and Negotiation Support
Government entities often prefer amicable settlement to avoid delays and political repercussions.
LEXARB facilitates structured negotiation and mediation to reach practical outcomes.
Arbitration Representation
When disputes escalate, arbitration becomes essential.
We represent clients before:
- ICC
- LCIA
- SCCA
- DIAC
- CRCICA
- UNCITRAL tribunals
Our team builds compelling narratives supported by:
- strong documentary evidence,
- expert witness testimony,
- detailed legal arguments,
- multilingual proficiency.
Litigation Support (If Applicable)
Some disputes may spill into national courts, and LEXARB coordinates with qualified local counsel as needed.
Post-Award Assistance
Including:
- enforcement of awards,
- defense against annulment claims,
- negotiated settlements post-award.
Case Study: Successful Defense of a Government Agency in a Major Infrastructure Dispute
An international contractor filed a claim exceeding SAR 400 million against a Middle Eastern government entity over a wastewater treatment project. Allegations included delays, design changes, and regulatory-driven interruptions.
LEXARB structured a comprehensive defense strategy:
Our Approach
- Delay Analysis
We worked with scheduling experts to show most delays were unrelated to government actions. - Procedural Non-Compliance
The contractor failed to submit notices under contractual and procurement rules — weakening their entitlement. - Regulatory Defense
We demonstrated that some delays resulted from environmental compliance requirements, not government negligence. - Quantitative Review
Extensive quantum analysis showed exaggerated cost claims.
Outcome
- Over 80% of the claim was dismissed.
- The remaining amount was resolved amicably.
- The project continued with minimal disruption.
Anecdote: A Missed Notice Determines a Hundred-Million Dollar Outcome
In a public transportation project, a contractor claimed compensation due to delayed approvals.
Upon review, LEXARB discovered the contractor never issued the time-barred notice required under the contract and procurement statutes.
This procedural oversight invalidated a substantial part of the claim, reinforcing a critical principle:
In government projects, compliance with procedures is as important as the claim itself.
Why Government Authorities and Contractors Choose LEXARB
Deep Knowledge of Public Procurement Laws
We understand the nuances of:
- Saudi GTPL,
- UAE federal procurement rules,
- Egyptian public contracting law,
- Qatar’s procurement regime.
This knowledge is vital in disputes related to tendering, variations, and contract administration.
Multidisciplinary Expertise
LEXARB integrates:
- engineering insight,
- financial expertise,
- regulatory understanding,
- arbitration strength.
Multilingual Advocacy
We operate in:
- English
- Arabic
- French
- Russian
—which is crucial for international consortiums.
Proven Track Record in High-Value Arbitration
Our team has managed disputes exceeding hundreds of millions across major public-sector projects.
Strategic and Practical Approach
LEXARB balances:
- legal arguments,
- public interest considerations,
- technical realities,
- administrative constraints.
Confidential and Efficient Dispute Resolution
Particularly important for politically sensitive disputes.
Conclusion: Efficient Dispute Resolution Is Essential for the Success of Government Projects
Government contracts carry national significance, demanding fast, fair, and expert-driven dispute resolution mechanisms.
Through early intervention, strategic claims management, expert coordination, and world-class arbitration representation, LEXARB ensures that public-sector disputes are handled with the highest level of legal precision and professionalism.
Whether representing governments, international contractors, PPP entities, or engineering consultants, LEXARB provides the dispute resolution framework necessary to protect public interest and project viability.
If you are a government body, contractor, PPP entity, or consortium involved in a public-sector project or tender, contact LEXARB for a confidential consultation on dispute resolution, arbitration strategies, and procurement compliance.
Our arbitration experts are ready to defend your interests at every stage.