MEDIA & NEWS

How are current supply chain and price escalation risks affecting your projects?

Construction disputes rarely start with lawyers. They start with the market. A shipment that does not arrive. Steel prices that suddenly increase. A project schedule that quietly begins to slip. Weeks later, the issue becomes a contractual dispute. Across the…

Construction disputes rarely start with lawyers.

They start with the market.

A shipment that does not arrive.
Steel prices that suddenly increase.
A project schedule that quietly begins to slip.

Weeks later, the issue becomes a contractual dispute.

Across the Gulf region, construction projects are increasingly exposed to two structural pressures:

  • supply chain disruption
  • price escalation in key materials

Yet the legal challenge is not simply economic.

The real question is how the contract classifies these events.

Is this:

  • a normal commercial risk borne by the contractor?
  • an exceptional circumstance disturbing the economic balance of the contract?
  • or an exceptional event under FIDIC?

The answer determines everything: entitlement to time, entitlement to money, and sometimes whether a dispute arises at all.

We have recently published a legal paper examining these issues in the context of construction projects in the Gulf region.

The paper explores:

  • the legal framework governing economic imbalance in construction contracts
  • the limits of force majeure in price escalation disputes
  • the role of Article 249 (exceptional circumstances) under civil law systems
  • how FIDIC clauses interact with supply chain disruptions
  • why many contractor claims fail despite having a strong legal basis

The study also includes practical tools used in real disputes:

  • a claim notification timeline
  • a contractor decision tree
  • a claims preparation checklist
  • guidance on negotiation before disputes escalate

The objective is not academic. It is practical: to help contractors, engineers, and project teams understand how market disruptions become legal disputes — and how they can be managed before they reach arbitration.

The full paper is attached below.

I would be interested to hear from others in the industry: How are current supply chain and price escalation risks affecting your projects?

📄 Download Full Study
Back ↗
Book an Appointment