First, check the contract's notice provisions and give notice in the required form and time, even if the full effect of the event is not yet known. Many FIDIC-based contracts require notice within 28 days of the contractor becoming aware of the event, and missing that deadline can bar the claim. Second, start recording the impact: update the programme, keep site diaries, photographs and correspondence, and track additional costs separately. Early, accurate notices are the foundation of successful construction claims, and we can review the draft notice before it is sent to the engineer or employer.

Most construction claims are resolved through negotiation, often after an engineer's determination or a dispute board decision. Where agreement is not possible, the contract usually provides for arbitration, which may be seated in Dhaka under the Arbitration Act 2001 or abroad under institutional rules. Some contracts and many smaller disputes go to court, where the Commercial Courts Act 2026 may apply, and mandatory pre-case mediation is being introduced for certain disputes. Public contracts may include administrative review steps. We advise on the route that fits the contract, the amount at stake and the client's commercial goals.

An employer can generally claim liquidated damages if the contract provides for them, the contractor has failed to complete by the relevant date and no extension of time is due. Bangladesh courts apply the Contract Act 1872, under which a stipulated sum is generally treated as a maximum and the court awards reasonable compensation not exceeding it, so the amount is not automatically recoverable in full. Employer-caused delay, a failure to grant justified extensions or defective contract machinery may also undermine the claim. We advise employers on deductions and contractors on challenging them as part of wider construction claims.

Bangladesh courts generally treat unconditional bank guarantees as independent of the underlying contract, so the bank must pay a compliant demand even if the construction dispute is unresolved. Courts may restrain payment only on narrow grounds, such as established fraud known to the bank or circumstances that would cause irretrievable injustice, and the threshold is high. A demand that does not comply with the guarantee's terms may also be refused. Because time is short once a demand is made, contractors should review guarantee wording before disputes arise and seek advice immediately if a call appears likely.

Two sets of time limits matter. The contract may impose short notice periods and deadlines for referring disputes to a dispute board or arbitration, which can be strictly enforced. The Limitation Act 1908 then sets general statutory periods for court suits, and those periods are also relevant to arbitration. Calculating limitation can be complicated where a project runs for several years, payments are made in instalments or acknowledgements are given. We review both contractual and statutory deadlines at the start of any matter, because a late claim can fail regardless of its merits. Diarising deadlines in construction claims is essential.

Yes, particularly on large infrastructure projects funded by development partners and contracts based on FIDIC conditions, which provide for dispute adjudication or avoidance boards. A board can help resolve issues during construction and reduce the risk of a backlog of disputes at completion. Its decisions are usually binding unless and until revised by settlement or arbitration, and a party that disagrees must normally give a notice of dissatisfaction within a short period. We prepare referrals, respond to referrals and advise on whether and how to challenge a decision in later proceedings involving construction claims. Board decisions deserve prompt review.

Yes. Bangladesh is a party to the New York Convention, and the Arbitration Act 2001 provides for recognition and enforcement of foreign arbitral awards made in other Convention states, subject to limited grounds for refusal such as incapacity, invalid agreement, lack of proper notice or conflict with public policy. Enforcement proceedings are brought before the competent court, and the award debtor may resist. Practical issues such as locating assets, currency conversion and timing should be considered early. We advise award creditors and debtors on enforcement strategy and act in the enforcement proceedings. Recovery planning should start early.

It depends on the strength of the claim, the evidence, the cost and time of proceedings, the counterparty's ability to pay and the value of the commercial relationship. Arbitration can be expensive and may take a considerable time, while settlement offers certainty and preserves cash flow. A strong, well-documented claim usually produces a better settlement, so preparing for arbitration often improves negotiation. Mediation can help where talks have stalled. We give a candid assessment of prospects, costs and risks and help clients decide when to settle and when to press on. Timing also matters a great deal.