The contracting industry and construction projects are the backbone of the country’s development. From residential buildings to large national projects such as dams, bridges, freeways, power plants and petrochemicals, all are formed in the form of contract agreements. But these contracts are perhaps the most complex and challenging type of contracts in the Iranian legal system. The Contract Law Department of the Lawyers Club, specializing in jurisprudence and public and private contract law, accompanies contractors, employers, consultants and engineers.

The most important legal challenges of contract contracts
1. Statements of status and price adjustment
One of the hottest areas of dispute between the contractor and the employer. Delays in issuing statements of status, differences in unit price analysis, calculation of adjustment coefficients and price increases due to inflation or currency fluctuations are among the cases that constitute a huge volume of contract claims.

2. Delays and resulting damages
Delays in project delivery, delay penalties, determining whether the delay is due to force majeure, the fault of the employer or the contractor himself. This distinction requires in-depth legal expertise and careful documentation.

3. Government and public contracting contracts
Contractors face specific challenges when dealing with executive agencies (ministries, municipalities, public institutions): unilateral conditions, contract addendum, specific rules for tenders and auctions, and restrictions on arbitration.

4. General conditions of the contract
These conditions, which are the backbone of most Iranian construction contracts, have different interpretations. Clauses related to contract termination, work suspension, quality control, operation meeting minutes, and workshop equipment meeting minutes are always a matter of dispute.

5. Cost increase claims and lawsuits
In long-term projects, changing economic conditions, rising material prices, currency fluctuations, and wages force the contractor to file claims. Presenting and defending these claims in dispute resolution bodies and arbitration bodies requires high legal skills.

6. EPC, BOT and Civil Partnership Contracts
Modern industrial contracts (engineering, procurement and construction) and types of public-private partnerships have different legal structures and require their own obligations, risks and guarantees.

7. Collateral and guarantees (bank guarantees, good performance, security deposits)
Bank guarantees and the conditions for their seizure are among the biggest challenges for contractors. Illegal seizure of guarantees by the employer and ways to prevent it require immediate legal action.

8. Differences in quality of execution and technical standards
Allegations of non-compliance of work with technical specifications, poor execution or use of substandard materials. These claims usually require formal judicial expertise and interpretation of technical project documents.

9. Termination of the contract
Unilateral termination by the employer, contractor withdrawal, calculation of work performed after termination and return of guarantees. Termination of the contract is one of the most costly and complex legal claims.

10. Claims of subcontractors and suppliers of materials
The main contractor has separate contracts with subcontractors and suppliers. Non-payment to the subcontractor, stoppages and chain disputes are among the common challenges in this area.

Why the Contract Law Department of the Lawyers Club?
Contract contracts are the realm of combining technical engineering knowledge and legal knowledge. A contract lawyer must be as familiar with the project implementation process as an engineer. Our team consists of lawyers who, in addition to mastering laws and regulations, understand technical and engineering terminology and are familiar with the procedure of dispute resolution boards and contract arbitrations.

Our services:
1. Drafting and negotiating contract contracts (private and public)
2. Consulting and preparing statements of status and price adjustment analysis
3. Defending contractors in dispute resolution boards and the Administrative Court of Justice
4. Following up on claims for seizure of guarantees
5. Preparing and defending claims for cost increases
6. Consulting in tenders and auctions, arbitration of contract disputes
7. Auditing contracts of ongoing projects

A project without a solid contract is the foundation of BP. The Contract Law Department is the legal foundation of your project. For more information, send a message to 09127607318.