Construction arbitration in Bangladesh is the preferred mechanism for resolving disputes arising from construction contracts — including payment disputes, variation claims, delay claims, and defects claims. Given the complexity of construction disputes and the technical expertise required to resolve them, arbitration — with its ability to appoint specialist arbitrators, its confidentiality, and its binding awards — is significantly more suitable than court litigation for construction disputes in Bangladesh.
Why Construction Disputes Are Suited to Arbitration in Bangladesh
Construction disputes in Bangladesh often involve complex technical and commercial issues: disputed variations to the contract scope, delays caused by multiple parties, defects in completed works, and disagreements over the valuation of claims. These issues require a decision-maker with both legal expertise and technical knowledge of the construction industry — precisely the kind of specialist arbitrator that BIAC and BIArb can appoint. Construction arbitration in Bangladesh also offers confidentiality, which is important for protecting the commercial reputations of contractors and employers.
Legal Framework for Construction Arbitration in Bangladesh
Construction arbitration in Bangladesh is governed by the Arbitration Act 2001. Most standard form construction contracts used in Bangladesh — including FIDIC contracts and government procurement contracts — contain arbitration clauses that specify BIAC or ad hoc arbitration as the dispute resolution mechanism. The Contract Act 1872 provides the substantive legal framework for construction contracts in Bangladesh.
Common Construction Disputes in Bangladesh Suitable for Arbitration
Payment Disputes
Payment disputes — including disputes over the valuation of work done, the deduction of liquidated damages, and the withholding of retention money — are the most common construction disputes in Bangladesh. Arbitration provides a faster and more efficient route to recovery than court litigation.
Variation Claims
Disputes over the valuation of variations to the contract scope are common in construction projects. An arbitrator with technical expertise can assess the value of variations more accurately than a court judge.
Delay Claims
Disputes over the causes and consequences of construction delays — including claims for extension of time and loss and expense — require detailed analysis of the construction programme and records. A specialist construction arbitrator is better placed to assess these claims than a court judge.
Defects Claims
Disputes over the quality of construction work — including structural defects, finishing defects, and disputes over the standard of materials used — require technical expertise and are best resolved by a specialist arbitrator.
The Construction Arbitration Process in Bangladesh
Construction arbitration in Bangladesh under BIAC rules follows these steps: notice of arbitration, appointment of the arbitral tribunal (typically a sole arbitrator or three-member tribunal with construction expertise), exchange of pleadings (statement of claim and statement of defence), document disclosure (including construction programmes, site records, and correspondence), expert evidence (from quantity surveyors, engineers, and other technical experts), the hearing, and the award. BIAC provides administrative support at each stage.
TRW Law Firm: Construction Arbitration Services in Bangladesh
TRW Law Firm has extensive experience in construction arbitration in Bangladesh, representing contractors, subcontractors, employers, and engineers in BIAC and ad hoc arbitrations. Contact TRW at tahmidurrahman.com or visit meheruba.com.
Frequently Asked Questions
What types of construction disputes can be arbitrated in Bangladesh?
All types of construction disputes can be arbitrated in Bangladesh, including payment disputes, variation claims, delay claims, defects claims, termination disputes, and disputes over the interpretation of contract terms.
How long does construction arbitration take in Bangladesh?
Construction arbitrations in Bangladesh typically take 6 to 18 months, depending on the complexity of the dispute and the availability of the parties and the arbitrator.
Can I get an interim payment order in construction arbitration in Bangladesh?
Yes. Under Section 21 of the Arbitration Act 2001, the arbitral tribunal may order interim relief, including an interim payment order, pending the final award.
Related articles: Alternative Dispute Resolution in Bangladesh | Arbitration Lawyer in Bangladesh | Commercial Arbitration in Bangladesh
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Contact TRW Law Firm
If you need expert legal advice on this matter, contact TRW Law Firm — one of Bangladesh’s leading law firms specialising in ADR, arbitration, and commercial litigation. Visit tahmidurrahman.com or lawfirm.com.bd to speak with a specialist today.
