Today we had a lecture on delays, disputes, and arbitration in the construction industry with Mr. Ian Harper. Many construction projects will have some delays from the contractual finishing date. These delays can stem from the contractor, the client, or from factors outside of either party’s control. If the contractor causes the delays, it can lead to liquidated damages, a payment the contractor must every day if not finished with a project by a certain date. If the client causes the delays, it may lead to an extension of time. Contractors can obtain an extension of time if there are variations in the original design, changes in the quantities of materials, and other reasons. A contractor’s request for more money or time is called a claim. If claims are rejected and the dispute cannot be amicably resolved, then a arbitration, litigation, or mediation may have to take place.
These are issues that every contractor would love to avoid, but at some point in our careers, we will all encounter these. It is extremely important for us to understand the process of disputes and delays, and some of the basic contract conditions and types seen in the UAE. With this knowledge, we can be prepared for any potential issues that may arise and try to avoid them.