Contractor Payment Disputes in Bahrain: Court Orders Recovery of BHD 306,478
A Bahrain commercial court judgment highlights how contractors can pursue unpaid dues where contracted work has been completed but payment remains outstanding.
— 19.05.2026 04:00:00 — 4 views
A commercial dispute arising from a contracting agreement in Bahrain resulted in a court judgment ordering the recovery of more than BHD 306,000, together with legal interest and associated expenses.
The dispute arose after a company carried out agreed contracting works but was not paid the outstanding amount despite the debt being acknowledged.
According to lawyer Manal Dhahi, the claimant subsequently brought proceedings seeking payment from the defendant company and its partner, arguing that they were liable for the unpaid contractual dues.
What Was the Contracting Dispute About?
The claimant had entered into an agreement with the first defendant to perform contracting works in exchange for an agreed amount.
According to the case presented before the court, the claimant completed the agreed works, but the outstanding payment was not made.
The claimant therefore commenced legal proceedings to recover the amount due under the contract.
The case also involved the owner of the defendant company, with the claimant seeking to establish liability for the debt based on the circumstances and documentation presented before the court.
Category - Legal News
Region - Bahrain/ Saudi Arabia
Topic - Contractor Payment , Debt Recovery, Commercial Disputes
What Must a Contractor Prove When Claiming Unpaid Dues?
A contractor seeking payment generally needs to establish the existence of the contractual relationship, the work performed and the amount that remains outstanding.
Documentary evidence can therefore become central to a payment-recovery claim.
This may include:
- signed contracts or agreements;
- quotations and purchase orders;
- invoices;
- completion or delivery records;
- correspondence between the parties;
- acknowledgements of outstanding amounts;
- authorized signatures; and
- evidence showing whether payments were made.
In this case, the court considered the documentation submitted by the claimant when determining whether the contractual debt had been established.
How Does the Burden of Proof Apply?
The court referred to the general evidentiary principle that the party asserting an obligation must prove it, while the party claiming that the obligation has been discharged must establish payment or another basis for discharge.
This means that once a claimant establishes the contractual obligation and the amount due, a defendant disputing liability may need to produce evidence demonstrating that the amount was paid or that the obligation was otherwise satisfied.
The absence of evidence proving payment can therefore become significant in a commercial recovery claim.
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Frequently Asked Questions
Yes. Where a contractor can establish a contractual entitlement to payment and the amount remains unpaid, legal proceedings may be available to recover the outstanding amount.
Contracts, invoices, completion records, payment certificates, correspondence, authorised signatures and acknowledgements of debt can all be relevant when establishing a payment claim.
The claimant generally needs to establish the obligation and entitlement being asserted. Where a defendant claims that the obligation has already been discharged, evidence of payment or another form of discharge may be required.
Depending on the contract, applicable law and circumstances of the dispute, a court may award interest on outstanding amounts. In this case, the court awarded late-payment interest at 3% per annum until full payment.
A judgment may require the unsuccessful party to bear certain litigation-related expenses. In this case, the court ordered payment of court fees, attorney’s fees and other specified expenses.