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Alpha Construction Consultants offers specialist advice and services for construction disputes and construction claims in the Engineering and Construction Industry. Whilst our experience covers all aspects of construction disputes and construction claims, we specializes in disputes and claims relating to the engineering and construction of Plants in the oil, gas and petrochemical industry.

Overview

Our consultants have been involved with establishing numerous multi-billion dollar projects and also the management of heavyweight litigation, claims and disputes against major multinational and state oil companies. We offer construction claims and construction Dispute Resolution services worldwide, in particular, Africa, the Far East and the Middle East including Saudi Arabia. We also have unique expertise in Shariah Law and Shariah Legal Opinions in Middle East construction projects.

Free Consultation is available.

A Strategic Approach is required to help senior management to control and limit the effect of claims and disputes on corporate earnings and to fulfill the requirements of the SEC (US) and the Sarbanes-Oxley legislation (US) and other local laws.

We aim to ensure that clients:

• Achieve their business objectives and contractual entitlements; and
• Are dealt with fairly on the project within the business and legal environment

Services

Our Services relate to every stage of the project life cycle and all forms of contracts used in the Engineering and Construction Industry including Engineering Procurement and Construction (EPC) lump sum turnkey (LSTK) and cost plus reimbursable contracts:

• Pre Contract Services including:
• Analysis and Drafting of documents including construction and engineering contracts
• Advising on the contractual structures plus Joint Venture Set up and Management ;
• Strategic Advice and Negotiation services
• Training Seminars Services on Construction Contracts, US FCPA and OECD Regulations plus also Anti Boycott Regulations. These highly important ancillary services prevent future problems Construction Claims and Construction Disputes
• Project Reality Check services. Corporations have inertia that often prevents the timely addressing of issues which grow and then often appear insoluble. An expert independent third party Project Reality Check presents to senior management its findings options and recommendations to minimize losses and avoid arbitration or litigation.
• Dispute Resolution services including:
  • Analysis and drafting of Claims /Correspondence / Interim Agreements so as to fortify the client’s contract rights and legal position and avoid exposure to unforeseen consequences;
  • Claim Preparation and Management;
  • Electronic Investigation (by the use of new database and search technologies to assist in cost-effective investigation of data during claims and litigation);
  • Services relating to Mediation and ADR, Arbitration and Litigation all depending upon the stage of and the Type of Dispute;

Construction Claims and Construction Disputes

Project Management which includes good Contract Management and Change Management is an essential feature of a successful project. Cost and schedule issues relating to Project Management, contract management and Change Management become contract disputes and contract claims. Issues relating to both money and schedule are almost invariably reduced to a dispute over cost and /or liquidated damages.

We seek to limit and manage risks and maximise recovery by presenting options arising from our factual and legal analysis based upon our experience gained over numerous previous projects; See Cost & Schedule and Types of Dispute.

While it is correct that Prevention is Better than Cure, it is also true that it is Never Too Late to get advice. The approach outlined below is the simplest and most cost effective way to prevent and resolve construction disputes and construction claims which, whatever the circumstances, have the potential to be resolved reasonably amicably without resort to expensive and lengthy arbitration or litigation.

We seek to assist senior management at all stages of the project life cycle.

Factors Giving Rise to Construction Claims and Construction Disputes

Though these are numerous they can normally be traced to the following:
• The unsuitability of the contractual structure for the type of project envisaged;
• Failure to estimate the scope by omission or in terms of complexity resulting in incorrect estimate of the cost and schedule required to complete the project;
• Exaggerated estimating of contractor’s abilities to achieve cost and schedule estimates and under resourcing the project from the outset;
• Defect in the contractual documents (omission, contradiction or ambiguity) with respect to the scope;
• Failure to implement the contractual and legal entitlements by Project Management;
• Failure to correctly estimate the effect of Changes to the original execution plan, in particular cumulative Changes;
• An overbearing party seeking to leverage its position to impose its viewpoint. Liquidated Damages together with Bank Guarantees and Standby Letters of Credit (US) for Bid, Performance and Warranty are often improperly utilised for this purpose;
• Compromising contractual positions during negotiation of legitimate additional cost and schedule entitlements. Often this is done inadvertently; and
• Unfamiliarity with local laws and customs, e.g. Shariah Law.

The foregoing factors plus other numerous others weave a complex web that entangle the contracting parties into construction claims and construction disputes that are often further aggravated by a lack of awareness of relevant facts and contractual issues. Our services provide cogent analysis plus possible options and viable recommendations.

Prevention of Construction Claims and Construction Disputes

The best way is to ensure that contractual documents are suitable to the task at hand and address all key aspects of the project, in particular those that relate to cost, schedule and quality. Any contractual defects will ultimately be reduced to money. It is insufficient to have a good contractual position on paper; it must be maintained by Project Management rigorously implementing contractual entitlements by adopting a Strategic Approach to contract management and Change Management.

Internal corporate inertia and short term goals often compromise the existing contract rights and obligations of the parties. This can and should be avoided since it distorts the contractual relationship and also lays the basis for further slippage from the contract position by altering expectations. These factors further compound the difficulties in recovering the contractual position and putting it back on a proper balanced footing.

Resolution of Construction Claims and Construction Disputes

To resolve or reduce the impact of such claims and disputes a Strategic Approach is always required - see Project Management and Change Management.

This involves ascertaining and analysing the facts underlying the dispute within the context of 1) the contractual position and the legal jurisdiction and 2) other factors such as the client business imperatives and objectives, and its corporate and business culture.

Project Management

Major projects invariably face numerous difficulties in foreseeing, estimating and providing for their inherent complexities. Project Management needs to identify as soon as possible its future issues and also recognise its need to obtain Strategic Advice from an independent external source at the earliest possible stage of the project.

Pre contract and Training Seminars services are available at the front end phase of a project whilst Project Reality Check and Dispute Resolution services are available during and post execution phase of the project.

Projects in the Middle East including Saudi Arabia pose particular challenges in particular those arising out of a lack of understanding and familiarity with style of business, Shariah Law and customs, the knowledge and understanding of which is indispensible to extracting contractual entitlements – See our Shariah Legal Opinion service.

In short, appropriate measures taken at all stages of the project life cycle prevent and facilitate the resolution of claims and disputes so as to achieve in the vast majority of cases, a result previously thought unattainable. Our Services are tailored to achieve the client’s business objectives by presenting options and recommendations consistent with its corporate culture.