What Happens If a Contractor Discovers Unexpected Site Conditions in a Bahrain Construction Project?
Unexpected site conditions are a frequent and often disruptive challenge in construction projects. Whether it’s hidden utility lines, contaminated soil, underground water, or unstable ground, these unforeseen conditions can significantly impact timeframes, costs, and construction methods.
For contractors working in Bahrain, discovering such conditions raises a critical legal question: Who is responsible? And more importantly what are your rights and obligations under the contract and Bahraini law?
In this blog, we explain how unexpected site conditions are handled in construction contracts, what steps contractors should take, and how legal professionals typically help resolve disputes when surprises arise. A general illustrative example is also provided to demonstrate how this issue plays out in practice.
What Are “Unexpected Site Conditions”?
Also known as “latent site conditions” or “differing site conditions,” these refer to physical conditions at the project site that:
- Were not visible or foreseeable during inspection or tendering
- Differ materially from the conditions described in the contract or drawings
- Cause additional costs, changes in methodology, or project delays
Examples include:
- Buried debris or utility lines not shown in site plans
- Contaminated soil requiring special disposal
- Unexpected water tables or rock formations
- Archaeological findings or protected environmental areas
Legal Framework in Bahrain
Most well-drafted construction contracts in Bahrain especially those based on FIDIC standards include clauses that govern what to do when unexpected site conditions are encountered.
Typically:
- The contractor must notify the project engineer or owner immediately
- The engineer then conducts a site investigation
- If the condition is proven to be unforeseen and not caused by the contractor, the contractor may be entitled to:
- Extension of time (EOT)
- Additional payment for extra work or equipment
Under Bahraini law, parties must act in good faith, and contract terms are key. If the contract is silent on this issue, courts or arbitrators will assess whether the condition could reasonably have been foreseen during due diligence.
Steps a Contractor Should Take When Discovering Unexpected Conditions
- Stop work in the affected area (if necessary for safety or investigation)
- Notify the project engineer or client in writing immediately
- Document the condition with photos, videos, reports, or expert findings
- Request variation approval or issue a claim under the contract
- Maintain a record of cost and time impact
- Engage a lawyer or claims consultant if the employer rejects the claim
Failing to follow these steps could result in waiving your rights to claim additional costs or time.
Example:
A contractor began excavation for a commercial foundation project.
While the site appeared normal during tender visits, the excavation team unexpectedly encountered a large underground water source not shown in the site survey.
The water caused flooding, delayed work, and required new dewatering equipment. The contractor promptly notified the project consultant and submitted a formal claim for the added cost and timeline adjustment.
However, the project owner refused the claim, arguing that the contractor should have anticipated groundwater issues. A lawyer was engaged to review the contract, which contained a clause entitling the contractor to relief in case of “unforeseen physical conditions.” After submitting supporting evidence and site reports, the parties entered into negotiation and agreed to a revised payment and extended timeline.
This example illustrates how contract wording, timely communication, and legal strategy determine outcomes when unexpected conditions appear on-site.
Best Practices to Manage and Avoid Disputes
For Contractors:
- Inspect the site thoroughly before bidding but know that not all issues are visible
- Ensure your contract includes a “differing site conditions” clause
- Report surprises immediately and in writing
- Document everything from photographs to invoices
- Engage legal or contractual experts early if the issue escalates
For Project Owners:
- Provide accurate site data and allow full inspection before contract signing
- Include a clear procedure for handling unforeseen conditions
- Respond promptly to contractor notices
- Avoid rejecting legitimate claims without investigation
- Work collaboratively with engineers and legal advisors to resolve disputes fairly