Expert Legal Solutions for the Contracting and Project Execution Sector​

The Contracting Sector in Bahrain: Legal Challenges and Protection Outlook

The contracting sector in the Kingdom of Bahrain represents a cornerstone of major developmental projects and serves as a primary driver of economic growth and urban transformation. However, this rapid expansion is accompanied by complex legal intricacies that directly impact project execution, quality, and the stability of contractual relationships between parties.

As a specialized legal firm, Manal Dhahi Legal Consultants and Private Notary possess extensive expertise and practical knowledge to professionally address these challenges, ensuring the protection of our clients' legal and commercial interests alike.

The key legal and operational responsibilities of contractors and project managers encompass several critical aspects, including project management and scheduling, selection and hiring of subcontractors and workers, procurement of materials and equipment, ensuring compliance with local and international laws and regulations, strict adherence to contract terms and conditions, and the delivery of work as agreed. Their contractual duties also include verifying work quality, issuing engineering and technical certificates, and maintaining all necessary governmental licenses and legal documentation.

In practice, however, numerous issues frequently arise that affect the entire project, notably:

    • The absence of formal contracts or the existence of incomplete or poorly drafted agreements.

    • Weak or missing documentation of project variations.

    • Poor record-keeping and disorganized management of contractual and financial documents, including invoicing and payments.

    • Failure to issue timely legal notices as required by contract terms.

    • Non-compliance with obtaining or renewing official licenses and permits.

    • Disputes over the quality of materials used or unauthorized substitutions, leading to compliance and standards issues.

    • Ambiguities in contract clauses that open the door to conflicting interpretations.

    • Payment delays or changes in credit terms impacting contractors’ cash flow.

    • Insufficient documentation to support claims for compensation, price adjustments, or delays.

    • Overlapping or conflicting documents that complicate proving rights and obligations.

This underscores the importance of our specialized legal services, through which we provide our clients—including contracting companies, engineering offices, and real estate developers—with comprehensive support in the following areas:

    • Drafting, reviewing, and preparing all types of contracts: contracting, subcontracting, supply, and technical consultancy, aligned with the latest international standards (such as FIDIC).

    • Offering legal guidance throughout all project phases, from planning to work delivery and certification of completion.

    • Managing disputes and legal claims related to delays, construction defects, payment issues, or breach of contract terms.

    • Representing clients before judicial and arbitration bodies in disputes, emphasizing alternative dispute resolution methods such as mediation and arbitration to minimize time and financial burdens.

    • Conducting legal due diligence on architectural and technical plans, engineering inspection files, and ensuring compliance with municipal and regulatory requirements.

    • Supervising regulatory compliance procedures in obtaining and renewing permits and licenses.

    • Advising on penalty clauses, warranties, liabilities, and rights arising from third-party claims.

Our firm is founded on unwavering principles and values that define our client relationships, including integrity, transparency, punctuality, precision, and prioritizing client interests above all else. We do not merely provide solutions after disputes arise; we work with you from the inception of your project to prevent problems and create a secure and stable contractual environment.

Whether you are a main contractor, consulting engineer, real estate developer, or project owner, Manal Dhahi Legal Consultants will be your ideal legal partner—fully understanding the complexities of the sector and providing practical, legally grounded solutions tailored to your needs.

Our Achievements

At Manal Dhahi Legal Consultants, we take pride in our strong track record of resolving complex legal issues in the contracting sector. Our legal team has successfully represented clients—contractors, subcontractors, developers, and engineering firms—in a wide range of disputes and compliance matters across all phases of project execution.

We have extensive experience and notable successes in handling cases involving:

    • Performance Bond Disputes: Ensuring contractors fulfill contractual obligations and protecting employers against default.

    • Retention Money Conflicts: Advocating for fair retention releases and proper deductions at project milestones.

    • Taking Over Certificate (TOC) Issues: Addressing delays and payment claims linked to TOC issuance.

    • Defects Liability Period (DLP) Claims: Representing parties during defect correction periods and managing contractor responsibilities.

    • Extension of Time & Delay Claims: Securing justifications for project overruns due to external or contractual changes.

    • Variation Orders Disputes: Handling modifications to scope, cost, and timeline through proper documentation and negotiation.

    • Payment Delays & Disputes: Enforcing contractual payment terms and resolving issues of delayed or withheld payments.

    • Contractual Ambiguities: Clarifying vague clauses, interpreting contract obligations, and securing enforceability.

    • Incomplete or Poorly Drafted Contracts: Addressing legal consequences of vague or missing terms that create liabilities.

    • Lack of Proper Variation Documentation: Assisting clients in substantiating variation claims to avoid financial loss.

    • Improper Notice Procedures: Resolving disputes caused by failure to adhere to contractual notice requirements.

    • Inadequate Record Keeping: Guiding clients to maintain legally valid documentation for accountability and dispute resolution.

    • Failure to Archive Final Documentation: Advising on retention of key documents to protect legal interests.

    • Disorganized Invoices & Payment Records: Correcting and managing financial documentation gaps during project audits.

    • Third-Party Supplier Claims: Defending or pursuing legal action in disputes involving delivery delays, quality issues, and substitution of materials.

    • Warranties & Guarantees: Clarifying supplier obligations and enforcing accountability for defective products or materials.

    • Liability for Defects: Addressing disputes over structural and material faults and the responsibility for rectification.

    • Supply Chain Compliance: Ensuring all parties in the supply chain adhere to regulatory and contractual requirements.

We also assist clients in matters related to:

Engineering & Technical Documentation:

    • Engineering Inspection Reports: Reviewing inspection findings for liability and compliance implications.

    • Architectural Drawings: Ensuring alignment between design documents and legal requirements.

Government Licenses & Permits:

We recognize the critical role that licenses and regulatory approvals play in the success of any contracting project. Our firm supports clients with:

    • Obtaining Essential Licenses: Including building permits, environmental clearances, safety approvals, electrical/mechanical permits, and trade licenses.

    • Addressing Licensing Challenges: Such as delays in approval, failure to obtain required permits, non-compliance with conditions, or disputes over license validity.

    • Renewal & Maintenance: Advising on timely renewals and continued compliance.

    • Liability Issues: Determining which party bears responsibility for obtaining and maintaining necessary licenses.

Through our deep legal and technical understanding of the contracting industry, we help our clients avoid costly mistakes, reduce legal risks, and resolve disputes effectively—ensuring the successful and compliant delivery of every project.