Case Study

Commercial Arbitration in an Infrastructure and Electrical Works Dispute in Jazan Under a Contract Exceeding SAR 5 Million

Dispute Value

SAR 5,000,000

The dispute arose from a contract for infrastructure and medium-voltage electrical works in Jazan Economic City. The contract value exceeded SAR 5 million, with claims exceeding SAR 3 million, concerning project delays, delivery of drawings, and compensation for remaining quantities. A multi-member arbitral tribunal was constituted, with Prof. Dr. Turki Al-Tayyar appointed as a member pursuant to a judgment of the Commercial Court of Appeal in Riyadh. After approximately one year of proceedings, the tribunal issued its arbitral decision resolving the dispute.

Case at a Glance

Nature of the Dispute

Infrastructure and electrical works

Contract Value

More than SAR 5 million

Claim Value

More than SAR 3 million

Type of Arbitration

Multi-member arbitral tribunal

Duration

Approximately one year

Outcome

Arbitral decision issued resolving the dispute

Background of the Dispute

The dispute arose from a contract concerning interconnection works, infrastructure facilities, and medium-voltage electrical works in Jazan Economic City. The parties disputed issues relating to contractual breaches, project delays, drawings, outstanding quantities, and compensation. The matter became further complicated following one party’s exit from the project and the resulting contractual and financial consequences. After considering the parties’ contractual, technical, and evidentiary submissions, the arbitral tribunal, which included Prof. Dr. Turki Al-Tayyar, issued its decision resolving the dispute.

Type of Contract

Infrastructure & Electrical Works

Project Location

Jazan

Scope of Works

Interconnection & MV Electrical Works

Subject Dispute

Breach, Delay, Drawings & Compensation

Nature of the Arbitration and Engineering Dispute

The matter concerned an arbitration arising from an infrastructure and electrical works contract, with claims relating to delay, delivery of drawings, contractual breach, and compensation for the remaining contractual quantities.

The arbitral process required review of the contract, scope of works, drawings, execution programme, correspondence, documentary evidence, and financial claims.

Reviewing the construction contract.
Analysing the infrastructure scope.
Reviewing the interconnection works.
Examining the medium-voltage electrical works.
Analysing project delays.
Reviewing the delivery of drawings.

Assessing the effect of one party’s exit from the project.
Reviewing project execution records.
Analysing the remaining contractual quantities.
Assessing the financial claims.
Reviewing the parties’ submissions and evidence.
Participating in the issuance of the arbitral decision.

Essential Elements of the Dispute

Construction Contract

Determining the technical and contractual obligations governing project execution.

Electrical Works

Reviewing the scope and execution requirements of the medium-voltage works.

Project Delay

Assessing the causes of delay and their connection to each party’s obligations.

Drawings

Evaluating the effect of the delivery or delay of drawings on project performance.

Remaining Quantities

Assessing the contractual and financial basis for compensation relating to unperformed or outstanding quantities.

Evidentiary Record

Weighing the documents and evidence submitted by both parties.

Key Legal Challenges

Exit of One Party from the Project

The departure of one party before completion of the project complicated the assessment of outstanding rights and obligations.

Strong Evidence on Both Sides

Each party relied on documents supporting its position regarding performance, delay, and responsibility.

Technical Nature of the Electrical Works

The dispute required careful consideration of the relationship between the technical requirements of the works and the legal obligations under the contract.

Allocation of Responsibility for Delay

It was necessary to determine whether the delay arose from performance issues, drawings, or other project-related causes.

Valuation of the Remaining Quantities

The compensation claim required analysis of the contractual and financial basis of the quantities that remained uncompleted.

Multiple Interrelated Claims

The dispute combined delay, drawings, contractual breach, and compensation claims, requiring each issue to be analysed within a coherent framework.

Our Arbitration Approach

Building a Project Timeline

The sequence of performance, delay, delivery of documents, and drawings was reviewed chronologically.

Analysing the Municipal Decision

The administrative basis and legal consequences of the vacation decision were examined in detail.

Assessing the Effect of Project Exit

The consequences of withdrawal or cessation of work were analysed in relation to outstanding obligations and claims.

Balancing Technical and Contractual Evidence

Technical documents and correspondence were assessed in light of the governing contractual provisions.

Separating the Financial Claims

Each monetary claim was reviewed independently and linked to the specific work or alleged breach on which it was based.

Participating in a Reasoned Arbitral Decision

The issues were considered by the tribunal through to the issuance of a decision resolving the claims submitted.

Arbitration Services Provided

Participation in the Arbitral Tribunal

Serving as a tribunal member in proceedings constituted pursuant to a judicial appointment.

Contract Review

Analysing the contractual obligations relating to infrastructure and electrical works.

Evidence Review

Assessing the documents, correspondence, and drawings submitted by the parties.

Delay Analysis

Reviewing the causes and consequences of delay in project execution.

Claims Assessment

Considering the financial and compensation claims submitted in the arbitration.

Determination of the Dispute

Participating in the deliberations and issuance of the arbitral decision.

Experience in Arbitration and Infrastructure Disputes

Atyar Advocates and Legal Consultants has experience in matters involving commercial arbitration, international commercial arbitration, construction disputes, infrastructure works, electrical contracting, major projects, and complex commercial agreements.The firm’s Founder also has experience serving as sole arbitrator and as a member of arbitral tribunals in disputes involving construction, infrastructure, and major project claims.

Legal Insight

In infrastructure and electrical works disputes, the legal and technical aspects of the project are often inseparable.Claims involving delay or remaining contractual quantities require coordinated analysis of the contract, execution programme, drawings, correspondence, and the causes of suspension, withdrawal, or incomplete performance.Where both parties possess evidence supporting their respective positions, careful assessment of the evidentiary weight of each document becomes central to reaching a balanced arbitral determination.

Legal Value Delivered

Resolved a dispute arising from a contract exceeding SAR 5 million.
Considered claims exceeding SAR 3 million.
Analysed a dispute involving both technical and contractual issues.
Assessed the consequences of one party exiting the project.
Reviewed competing evidence relating to performance and delay.
Participated in the issuance of an arbitral decision resolving the matter.

Legal Team Responsible for This Matter

Practice Areas Related to This Matter

إثبات تملك عقار محطة وقود وإصدار حجة استحكام نهائية في محافظة تثليث

Final Judgment Confirming Ownership of a Fuel Station Property and Issuance of a Final Title Deed in Tathlith

Case Study Final Judgment Confirming Ownership of a Fuel Station Property and Issuance of a Final Title Deed in Tathlith...

Compensation claim for encroachment on inherited property in Al Baha, featuring a marked mountainous land plot, inheritance documents, a property plan, scales of justice, and a judge’s gavel

Legal Representation in a Compensation Claim Arising from Encroachment upon Inherited Property Valued at More Than SAR 1 Million in…

Case Study Legal Representation in an Inherited Property Encroachment Claim Dispute Value SAR 1,000,000 Disputes arising from encroachment by utility...

Reversal of a tenant eviction judgment allowing the tenant to remain in a Riyadh property until the lease expires

Eviction Judgment Set Aside and Tenant Permitted to Remain in the Property for the Full Lease Term

Case Study Eviction Judgment Set Aside and Tenant Permitted to Remain in the Property for the Full Lease Term The...

Legal case files and documents with scales of justice and a judicial gavel, representing a petition for reconsideration in an employment dispute concerning the classification of disability as occupational rather than non-occupational.

Petition for Reconsideration in an Occupational Disability and Employment Termination Dispute

Case Study Petition for Reconsideration in an Occupational Disability and Employment Termination Dispute Disputes involving occupational disability, termination of service,...

Real estate investment in Mishlah Center, Al-Summan, structured as a lease with a promise of ownership and valued at over SAR 50 million, featuring land plots, property plans, and scales of justice.

Legal Representation in a Real Estate Investment Structured as a Lease with a Promise to Transfer Ownership Exceeding SAR 50…

Case Study Legal Representation in Real Estate Investment Lease with Promise of Ownership Al-Summan SAR 50M Dispute Value SAR 50,000,000...

Compensation claim for encroachment on real estate assets in Makkah valued at SAR 200 million, featuring a marked land plot, property plans, scales of justice, and a judge’s gavel

Legal Advice and Assessment in a Compensation Claim Arising from Encroachment upon Real Estate Assets Exceeding SAR 200 Million in…

Case Study Legal Advice and Assessment in a Compensation Claim Arising from Encroachment upon Real Estate Assets Exceeding SAR 200...

Need Legal Support in Construction or Infrastructure Arbitration?

If you are involved in a dispute concerning an infrastructure project, electrical works, a construction contract, or delay and compensation claims, Atyar Advocates and Legal Consultants provides experience in arbitration, contract analysis, construction claims, and commercial dispute resolution.

جاهز لحماية حقوقك أو تطوير أعمالك؟

تواصل معنا اليوم واحصل على استشارة قانونية موثوقة

سواء كنت فردًا تبحث عن تمثيل قانوني موثوق أو شركة تحتاج إلى دعم قانوني متخصص، نحن في شركة أطيار للمحاماة والاستشارات القانونية جاهزون لمساعدتك. دعنا نكون شريكك القانوني في كل خطوة، بخبرة تتجاوز 23 عامًا في الأنظمة السعودية.

احجز استشارتك الآن

فرع الرياض

فرع الخبر

بيانات الاتصال

مجالات الممارسة

القانون التجاري والشركات

صياغة العقود والوثائق القانونية

القانون المالي والمصرفي

الضرائب والزكاة والجمارك

العقارات والملكية الخاصة