Construction Arbitration for Industry Challenges and Claims | LEXARB

Introduction: Why Arbitration Has Become the Construction Industry’s Most Essential Dispute Resolution Tool

The construction and infrastructure sector across the Middle East, North Africa, and beyond has evolved into a realm of mega-projects, intricate contract structures, global supply chains, and sophisticated engineering methodologies. From Saudi Arabia’s giga-projects to the UAE’s smart infrastructure networks, Qatar’s energy complexes, and Egypt’s industrial expansions, the modern construction landscape is more complex than ever.

With this complexity comes an increased likelihood of disputes — often significant in value, technically intensive, and involving multiple stakeholders. These disputes frequently revolve around:

• delays and extensions of time,
• variations and cost overruns,
• design errors and engineering failures,
• performance and quality issues,
• subcontractor conflicts,
• cross-border supply problems,
• multimillion-dollar financial claims.

Because litigation can be slow, rigid, and ill-suited to highly technical disputes, arbitration has become the preferred mechanism for resolving construction claims.

LEXARB provides highly specialized arbitration services tailored to the construction industry, combining legal precision, engineering insight, and strategic leadership to safeguard client interests.

 

1. Why Arbitration Is the Ideal Mechanism for the Construction Sector

Construction disputes are unlike typical commercial conflicts. They require a dispute resolution forum that is:

• flexible,
• confidential,
• technically capable,
• internationally recognized,
• efficient in handling lengthy documentation and expert evidence.

Arbitration meets all these requirements.

 

1. Ability to Handle Complex Technical Issues

Construction disputes often center on:

• structural or design errors,
• MEP/HVAC system failures,
• engineering non-compliance,
• defective materials,
• productivity disruptions,
• project sequencing and resource allocation,
• delay and concurrency analysis.

Arbitration allows parties to appoint tribunals with engineering expertise, ensuring accurate interpretation of technical evidence.

 

2. Suitability for Multi-Party and Multi-Contract Disputes

Modern construction projects typically involve:

• employers,
• main contractors,
• subcontractors,
• suppliers,
• consultants,
• government authorities.

Arbitration rules (such as ICC, DIAC, SCCA, LCIA, and ICC) allow consolidation or joinder, making it easier to address interconnected claims.

 

3. International Flexibility and Neutrality

Most construction contracts incorporate:

• FIDIC frameworks,
• EPC contractual structures,
• governing laws from different jurisdictions,
• foreign seats of arbitration,
• offshore supply arrangements.

Arbitration provides a neutral forum acceptable to international parties.

 

4. Faster Timelines Compared to Courts

Construction disputes can cripple a project if unresolved. Arbitration provides:

• controlled procedural timelines,
• ability to appoint experts quickly,
• less procedural bureaucracy,
• hearings customized to project needs.

This efficiency protects both time and financial resources.

 

5. Enforceability of Awards Worldwide

Thanks to the New York Convention, arbitral awards can be enforced in over 170 countries — a critical advantage for cross-border construction contracts.

 

1. The Most Common Construction Disputes Handled Through Arbitration

LEXARB regularly manages disputes involving:

 

1. Delay and Extension of Time Claims (EOT)

Often arising from:

• slow approvals,
• late issuance of drawings,
• scope changes,
• site conditions not disclosed,
• delays from suppliers or subcontractors.

We perform detailed forensic delay analyses to support or defend such claims.

 

2. Variation and Cost Escalation Disputes

Disagreements typically concern:

• changes in scope,
• valuation disputes,
• rework due to design clarifications,
• cost overruns caused by new requirements.

 

3. Engineering and Design Liability Claims

These occur when:

• consultants issue incorrect designs,
• systems clash (civil vs. MEP),
• codes and standards are not met,
• loads, calculations, or equipment sizing are incorrect.

 

4. Quality and Performance Defects

These claims revolve around:

• defective workmanship,
• non-compliant materials,
• failures during testing or commissioning,
• equipment performance issues.

 

5. Subcontractor and Supplier Disputes

Including:

• non-payment issues,
• delayed deliveries,
• defective components,
• disputes over scope allocation.

 

6. International Supply Chain Failures

These often include:

• equipment manufactured abroad,
• shipment delays,
• customs problems,
• warranty conflicts involving foreign entities.

 

III. LEXARB’s Arbitration Methodology: A Strategic, Evidence-Driven Approach

To deliver strong outcomes, LEXARB employs a comprehensive and structured arbitration methodology designed specifically for construction disputes.

 

1. Case Assessment and Strategic Planning

We begin with a deep review of:

• contract provisions,
• project records and correspondences,
• baseline and updated schedules,
• variation logs,
• quality reports,
• site diaries.

This results in a precise strategy outlining:

• claim viability,
• defense weaknesses,
• expert requirements,
• potential settlement options,
• procedural risks.

 

2. Preparation of a Comprehensive Evidentiary File

Construction arbitration is won through strong documentation.

LEXARB organizes:

• delay analysis evidence,
• technical design assessments,
• cost and quantum evaluations,
• expert support files,
• witness statements,
• project chronology presentations.

 

3. Drafting High-Level Written Submissions

LEXARB prepares:

• Statements of Claim and Defense,
• Replies and Rejoinders,
• technical submissions,
• procedural applications,
• expert challenge documents.

These submissions combine legal clarity with deep technical understanding.

 

4. Expert Management and Coordination

LEXARB works closely with delay, quantum, and engineering experts to ensure:

• fully aligned case theories,
• accurate methodology,
• credible reports,
• strong performance during cross-examination.

 

5. Hearing Advocacy and Argumentation

In arbitration hearings, we provide:

• persuasive oral advocacy,
• targeted cross-examination,
• visual presentations of delays and engineering concepts,
• challenges to opposing expert methods,
• evidence-backed arguments.

 

6. Settlement Strategy and Negotiation Support

LEXARB frequently assists with:

• mid-arbitration settlement discussions,
• drafting settlement agreements,
• risk-based negotiation strategies.

 

7. Global Enforcement of Arbitral Awards

If an award is issued, we assist in:

• recognition procedures,
• enforcement against assets,
• resisting annulment attempts,
• cross-border execution under the New York Convention.

 

1. Case Studies Demonstrating LEXARB’s Strength in Construction Arbitration

 

Case 1: EPC Industrial Project – USD 70 Million Delay Claim

LEXARB demonstrated:

• consultant-caused delays,
• employer-driven design changes.

Outcome: award of extension of time and significant compensation.

 

Case 2: Water Treatment Facility – Quality Dispute

LEXARB proved:

• the defect arose from a design error,
• contractor’s work complied with specifications.

Outcome: removal of penalties and approval of final works.

 

Case 3: Multi-Contract Transport Project Dispute

LEXARB coordinated:

• multi-party negotiations,
• technical clarifications,
• partial settlement agreements.

Outcome: project continued without disruption.

 

1. Why LEXARB Is the Leading Choice for Construction Arbitration

✔ Combined legal and engineering expertise

✔ Strong track record with FIDIC and EPC contracts

✔ Experience with high-value, multi-party disputes

✔ Deep familiarity with GCC and North African legal environments

✔ Skilled in managing technical experts

✔ Multilingual team (EN–AR–FR–RU)

✔ Innovative strategies tailored to complex construction claims

✔ Strong presence in major arbitration centers worldwide

LEXARB is more than a legal representative — it is a strategic partner that understands construction from foundation to commissioning.

 

Conclusion: Arbitration Is the Backbone of Modern Construction Dispute Resolution — LEXARB Masters It

Construction disputes are inevitable, but their impact can be controlled.
With LEXARB, clients gain:

• clarity,
• technical depth,
• strong advocacy,
• strategic protection of project interests.

If your project is facing a dispute or claim in the construction sector, contact LEXARB for a confidential consultation and a tailored arbitration strategy.