Aceris Law is pleased to announce that it has secured an award equivalent to over USD 13 million in compensation and outstanding contractual payments for its client in a complex construction arbitration. The arbitration was administered by the Kuwait Commercial Arbitration Centre and seated in Kuwait.
The three-member Tribunal also awarded interest and a substantial contribution to the Claimant’s arbitration costs, together with an extension of time under the subcontract. The dispute concerned delay, disruption and payment claims arising from a major construction project.
Aceris Law represented the Claimant throughout the proceedings, with William Kirtley, Anastasia Tzevelekou and Sidney Larsen serving as the primary lawyers on the case.
Tribunal Finds Main Contractor Responsible for Critical-Path Delay
A central issue was whether the prolonged delay to the subcontract works resulted from the Claimant’s performance or the main contractor’s failure to make the necessary work areas available.
Relying on contemporaneous project records and detailed expert analysis, Aceris Law demonstrated that prerequisite civil works had not been completed, preventing its client from carrying out its own works. The Tribunal expressly preferred the Claimant’s delay evidence and found that the Respondent had breached its contractual obligation to provide access.
The Tribunal emphasised that site access meant more than permission to enter the premises: work areas had to be available in a condition that allowed the subcontract works to proceed. It awarded substantial delay damages for the Respondent’s breach, distinguishing this liability from claims dependent on recovery from the employer under the subcontract’s back-to-back provisions.
Significant Recovery for Disruption
The Claimant also sought compensation for reduced productivity caused by delayed approvals, restricted work fronts and interference with the planned execution of the works.
The Tribunal accepted the Claimant’s disruption case in principle and endorsed the use of a composite measured-mile analysis in the circumstances of the project. Rejecting the Respondent’s position that the claim should be valued at zero, it awarded 80% of the Claimant’s final disruption claim.
The Tribunal also confirmed that these damages were recoverable regardless of whether the Respondent had received corresponding payment from the employer under the main contract.
Recovery of Outstanding Payments, Retention and Other Costs
The award also ordered payment of outstanding invoices and retention monies, as well as reimbursement of additional on-site costs incurred during the COVID-19 pandemic. In relation to those pandemic-related costs, the Tribunal found that the Claimant would not have incurred them had the Respondent’s breaches not prolonged the project.
The Tribunal awarded interest at 7% per annum, with interest on unpaid invoices and retention monies running from the commencement of the arbitration until payment in full.
The Claimant was further granted an extension of time to the end of the claim period, protecting it from delay penalties for that period.
Complex Delay and Quantum Issues
The proceedings involved extensive project documentation, competing delay and quantum analyses, and detailed questions of Kuwaiti law. The Tribunal considered the distinction between delay and disruption, the operation of back-to-back provisions, contractual notice requirements and the release of retention monies.
The result illustrates the importance of connecting contractual obligations, contemporaneous project records and carefully prepared expert evidence to establish both entitlement and loss.
Aceris Law secured this substantial award with its client’s overall arbitration costs amounting to approximately two-fifths of those claimed by the opposing party, representing a difference of around 60%. The Tribunal also ordered the Respondent to reimburse 50% of the Claimant’s costs. The result illustrates the value of combining rigorous case preparation and effective advocacy with disciplined cost management: pursuing substantial claims in a complex construction arbitration need not require matching an opponent’s expenditure.
Aceris Law’s experienced arbitration team regularly represents contractors, subcontractors, employers and other parties in major construction and engineering arbitrations. The firm’s strong track record reflects a focused approach to case strategy, supported by rigorous legal, factual and technical analysis.
To discuss a construction dispute, contact Aceris Law’s international arbitration team.
