There is no single best model. Design-bid-build gives the employer control over design but leaves it with interface risk. Design and build and EPC contracts place more design and performance risk on the contractor, usually at a higher price. EPCM and management contracting suit complex industrial projects where the owner wants close control. Public-private partnerships and government-to-government arrangements bring financing and policy considerations. The right project delivery model depends on the project's complexity, the employer's capacity to manage interfaces, financing requirements and procurement rules. We help clients compare the options against their specific objectives.

A foreign contractor may be able to perform certain projects through a branch or project office, but it generally needs a recognised local presence, tax registration and bank accounts before it can receive payments and engage staff. Permission for branch and liaison offices is now handled by Invest Bangladesh, which replaced BIDA from 23 August 2026. Some tenders require a joint venture with, or subcontracting to, a local firm. The right structure depends on the project, its duration, the tax position and the employer's requirements. We advise on the options and handle the registrations needed for efficient project delivery.

A construction joint venture agreement should cover the parties' scope of work and responsibilities, leadership and management structure, decision-making and reserved matters, financial contributions and cash calls, bonding and guarantee obligations, how profits and losses are shared, liability between the partners and towards the employer, insurance, confidentiality, deadlock, default, exit and dispute resolution. It should also align with tender requirements, the main contract and the partners' internal approvals. We draft and negotiate these agreements with a focus on practical project delivery, because unclear arrangements between partners can damage the relationship with the employer. Clear terms protect both partners.

Public construction projects in Bangladesh are generally procured under public procurement law and rules, often using electronic tendering. Development partner-funded projects may follow the funder's framework instead. Procurement rules govern eligibility, qualification, evaluation, contract award, variations and complaints, and they influence how much negotiation is possible. Contractors must also manage integrity risks, because misconduct allegations can lead to debarment. We help bidders understand the rules, review tender documents and plan their approach to variations and claims within that framework. Bidders should check eligibility criteria, bid security terms and clarification deadlines as soon as documents are issued.

A construction business typically needs company or branch registration, a trade licence from the local authority, tax and VAT registration, and, for public works, enlistment with the relevant procuring agencies and e-tendering registration. Projects themselves may need building and planning approvals, environmental clearance, fire safety approvals and utility connections, which are usually the employer's responsibility but affect the contractor's programme. Foreign staff need work permits and visas. Specialist activities such as handling explosives or operating certain plant require separate licences. We prepare a licence map so that the business can mobilise without avoidable delays. Timely renewals avoid project delivery interruptions.

Payments to contractors are generally subject to withholding of income tax at source and VAT deduction at source, with rates set by the Income Tax Act 2023, VAT law and annual finance acts. The rates can differ depending on the type of service, the contract value and whether the payment is for supply or services. Payments to non-resident contractors and subcontractors raise additional withholding and double tax treaty questions, and the Finance Act 2026 reduced withholding on interest to non-residents to 10%. We review the payment structure with tax advisers so project delivery budgets reflect the real tax cost.

Clear delegated authority is key. Contractors should adopt an authority matrix setting out who may approve variations, sign instructions, agree claims, issue guarantees and authorise payments, supported by board resolutions and powers of attorney that match it. Site teams should be trained on notices and on which communications bind the company. Regular reporting to senior management helps identify problems early, and weak authority controls are a common project delivery risk. We draft governance documents tailored to construction operations and review the main contract to ensure the contractor's internal approvals align with its obligations to the employer and to subcontractors.

Many contracts provide a staged dispute process, beginning with notices and negotiation, then an engineer's determination or dispute board, then arbitration or court. Bangladesh-seated arbitrations are governed by the Arbitration Act 2001. Court disputes may fall within the Commercial Courts Act 2026, and mandatory pre-case mediation is being rolled out by district under the Legal Aid Services (Amendment) Act 2026. Compliance with notice requirements and time bars is often decisive. When a problem escalates, we work with our dispute resolution team to protect the client. Contractors should keep contemporaneous records of instructions and delays to support any later claim.