Construction projects are uniquely vulnerable to disruption caused by unresolved disputes because interruptions in payment or performance during ongoing works can rapidly affect labour, procurement, subcontractor mobilisation, project sequencing, and ultimately project viability. Unlike many commercial disputes, construction conflicts frequently arise while contractual performance is still ongoing, meaning that delayed resolution may itself become a […]
Construction Arbitration: War, Delay Claims, and Rising Project Costs
The ongoing U.S.-Iran conflict is restricting shipping, energy, and payment conditions throughout the Gulf. Construction projects in the Middle East are already experiencing impacts on procurement, scheduling, cash flow, and claims. When construction clients discuss the U.S.-Iran war, the conversation quickly turns to practical issues. They are less worried about geopolitics and more focused on […]
A Practical Handbook on International Construction Arbitration
As the year begins, many in the construction industry are reviewing the disputes, claims, and lessons that shaped their projects in 2025. International construction arbitration continues to be demanding, shaped by technically complex records, evolving contractual frameworks, and growing expectations for timely and fair resolution of disputes. Looking ahead, several issues will continue to dominate […]
Back-to-Back Clauses in Construction Arbitration
Back-to-back clauses are a common feature of large international construction projects, particularly in the infrastructure and energy sectors, where works are delivered through multi-tiered subcontracting structures. In such arrangements, employers and subcontractors have no direct contractual relationship, a separation commonly referred to as the principle of privity of contract.[1] As a result, this contractual structure […]
Liquidated Damages and Penalty Clauses in International Arbitration
In international contracts, parties seek above all predictability and effective control of risk. One of the most powerful contractual mechanisms to achieve both objectives is to include a pre-agreed damages clause, commonly referred to as a liquidated damages or penalty clause. Such provisions fix in advance the sum payable where a party fails to perform […]