Yes. FIDIC forms are widely used on Bangladesh projects, both in the private sector and on public and development partner funded works. They work well as a base, but they need particular conditions that address Bangladesh law, tax, approvals, language and the dispute resolution route. Some FIDIC procedures, such as time-bar notices and the role of the engineer, interact with Bangladesh contract law and limitation rules in ways that should be checked. We prepare particular conditions for each project rather than relying on general conditions alone. We also prepare amendments where the employer's standard form must be used unchanged.

Liquidated damages clauses are commonly included and generally upheld as a pre-agreed measure of loss, but Bangladesh law follows section 74 of the Contract Act 1872, under which a court awards reasonable compensation not exceeding the stated amount. In practice, an employer should be able to show that the rate was a genuine pre-estimate of loss and that delay occurred for reasons the contractor bears. Clear records of the programme, delay events and extensions of time are essential. We advise both employers and contractors on drafting and enforcing these clauses. Caps on delay damages also need attention.

Only in limited cases. Bangladesh courts generally treat unconditional bank guarantees as independent obligations of the bank, so an injunction against payment is usually granted only for established fraud or where irretrievable injustice would result. A conditional guarantee may be resisted if its conditions are not met. Contractors should review guarantee wording before issuing it, keep evidence of performance and act immediately on any demand. We advise on urgent applications in the courts and on negotiating a withdrawal or extension of the demand with the beneficiary. Time is usually very short. Speed and evidence decide most of these applications.

The contract should make clear who investigates ground conditions, who takes the risk of unforeseeable conditions and what information the contractor may rely on. For approvals, it should list which permits the employer obtains, which the contractor obtains and what happens if an approval is late or refused. In Bangladesh, land access, utility diversions, environmental clearance and building approvals are common sources of delay. A precise EPC allocation of these risks, with relief and compensation mechanisms, avoids many later disputes about time and money on site. Pricing should reflect the allocation actually agreed. We review both points before tender.

The two contracts should be designed together. The EPC contractor gives performance guarantees and defects warranties for a period after completion, while the operator takes over running the plant. If the operator's actions can void EPC warranties, or the EPC contractor can blame the operator for defects, the owner may be left without a remedy. We align test procedures, performance standards, handover documents, spare parts and warranty obligations, and sometimes recommend that the EPC contractor or its affiliate provides initial O&M services to reduce interface risk. Lenders usually review this interface closely. Gaps here are expensive to fix later.

Common risks include delayed payment, particularly on public projects, foreign exchange availability and convertibility, changes in tax and duties, customs delays for imported equipment, land and access problems, and permits for foreign staff. Contractors should check tax registration, withholding on payments, VAT treatment and remittance procedures before pricing. Dispute resolution and governing law clauses deserve particular care. We advise foreign EPC contractors on these points at bid stage and during performance, working with our corporate team on structure and registration. Early tax and exchange advice protects margins over the life of the contract. Pricing should reflect these risks.

The best route depends on the contract and the size of the claim. Many FIDIC based contracts provide for a dispute board followed by arbitration. Domestic arbitration under the Arbitration Act 2001 is common, and international contracts may provide for institutional arbitration abroad. Court litigation remains available where there is no arbitration clause, and the Commercial Courts Act 2026 introduced a dedicated framework for commercial disputes. Negotiation and mediation often resolve claims faster. We help clients choose and pursue the route that suits their claim and enforcement needs. Enforcement planning should begin early. Costs and speed differ widely.

Two separate time limits usually apply. The contract itself may require notice of a claim within a fixed period, often 28 days under FIDIC forms, and failing to give notice may bar or reduce the claim. Separately, the Limitation Act 1908 sets the period within which legal or arbitral proceedings must be started. We review construction contracts for notice requirements and help clients set up a claims procedure on site so that rights are not lost through missed deadlines. Keep a register of notice deadlines and review it at each progress meeting.