Demand soars for UAE construction dispute lawyers

LEGAL DEMAND: Demand has soared in the UAE for dispute resolution lawyers amid the continuing construction sector crisis. (Getty Images)

Dubai has witnessed a big rise in demand for lawyers for litigation and dispute resolution, as the construction sector reels from unpaid contractor bills, a leading recruiter has said.
 
“There has been a big shift in requirements from the legal profession recently with a move from lawyers involved with mergers and acquisitions to managing contentious legal issues, litigation and dispute resolution,” said James Liley, who manages legal recruitment for Dubai-based Human Capital Investment.

Liley said the demand was so great in the region for lawyers specialising in contentious law that firms were on a major recruitment drive.
 
“The construction industry has seen a huge increase in dispute cases and as such private practice law firms are setting up specialist teams to cope with this increase,” he added.

“Businesses have been recruiting their own lawyers rather than using external law firms in a cost cutting move which has opened opportunities for qualified lawyers to take ‘in-house’ positions instead of working for a law firm.”

It comes amid huge upheaval in the construction and real estate sector with contractors in the UAE owed millions of dollars from cash-strapped developers hit hard by the downturn.

The Abu Dhabi Judicial Department (ADJD) said this week that labour courts in Abu Dhabi and Al Ain saw a 66 percent increase in recorded cases in the first half of the year to 1461, compared to 882 in the same period last year.

In May, Arabian Business reported that lawyers had seen a sharp rise in litigation and arbitration cases mostly in construction and real estate.
 
Arbitration is a legal process for resolving disputes outside the courts.

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READERS' COMMENTS

INCREASING & UNRESOLVED UAE CONSTRUCTION DISPUTES
Posted by Zahid Syed, Yanbu-Jeddah, Saudi Arabia on Sunday 30 August 2009 at 17:21 UAE time


CONSTRUCTION DISPUTE MANAGEMENT

Indeed time spent in advance on planning and preparation for arbitration and litigation, will prove beneficial by facilitating a head start. It will also ensure timely actions whilst defaulting party is still around.

In the event of a dispute, most engineering and construction contracts typically provide 30days or so, for an expert to be appointed, by joint party agreement, for adjudication, with costs and basis to be shared by both parties. In case of failure to do so within the stipulated period, such contracts require that the matter shall be settled under the Rules of Conciliation and Arbitration of the International Chamber of Commerce, by Arbitrator(s) appointed in accordance with said rules. Such contracts also typically obligate contractor to proceed with the work with due diligence while any matter is under dispute, without prejudice to all rights, remedies or claims which contractor or client may have in respect of such dispute.

Once decision is made to go ahead, it becomes increasingly impossible until the case is resolved, to withdraw for both parties, with enormous expenses already incurred toward reaching an out of court amicable settlement.

Contractual provisions and probability of relative success should be seriously considered, before embarking.

Kind Regards
Zahid Syed, ACIArb, ACMI
Senior Contracts Manager,
Mob: +966556002482

Demand soars for UAE construction dispute lawyers
Posted by Kishan Solanki, Dubai, UAE on Thursday 13 August 2009 at 08:47 UAE time


Curretnly, the no. cases taken up for artitration or litigation are like a tip of the iceburg. As per the conditions of Contract generally followed (mostly FIDIC based) in UAE requires certain time to pass for issuing necessary notices before commencing any procceding for dispute resolutions through artibtration or litigations.

Most of the contractors in UAE still waiting for general direction from government bodies for amicable solution to get thier money. Most feel that once you commence arbitration proceeding, you will be out of the market (unless you are a big heavyweight contractor with strong loac support). So they would prefer to rather wait & watch.

Now considerable time has been elapsed (more than 6 months) for any concrete steps from regulatory authorites, the contractors are beginning to prepare for arbitrationor litigation proceedings.

It is always better to keep ready for actions that may be required to get your money after putting your hard efforts. One should not feel bad and afraid to go for arbitration or litigations.

To keep or recruit experienced person having techno-commercial accumen with legal eye will help organisations to initiate preventive measure relating to contracts management. Some investment in this direction help organisations to minimise high cost of hiring specialist law firms.

Regards

Kishan Solanki
Contracts Manager
Mob 050 7396163, Dubai

Such is the way of Life
Posted by Durre Sadaf, Pune, India on Thursday 13 August 2009 at 08:32 UAE time


Some one's loss is anothers gain. Such is the way of life.

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