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- info@al-tayyar.com.sa
- 0555398969
Case Study
Dispute Value
Recovery of Outstanding Construction and Maintenance Payment Certificates of Approximately SAR 1 Million
SAR 1 million
Atyar Advocates and Legal Consultants represented a private contracting company in a financial claim of approximately SAR 1 million arising from construction and maintenance works under a contract valued at approximately SAR 2 million. The dispute involved the validity of the manually executed contract, the authority of the counterparty’s employee who signed project documents, approval of payment certificates, and allegations regarding completion of the agreed works.The firm provided legal advice, prepared the necessary legal study and pleadings, represented the client before the competent authorities, and handled the enforcement proceedings. The matter concluded with a final judgment ordering the counterparty to pay the full claimed amount, followed by enforcement to recover the client’s financial rights.
Quick Matter Overview
Contract Value
Approximately SAR 2,000,000
Amount Claimed
Approximately SAR 1,000,000
Nature of the Dispute
Outstanding payment certificates for construction and maintenance works
Duration of the Matter
Approximately one year and seven months
Judicial Route
First Instance Court, Court of Appeal, and Enforcement Court
Final Outcome
Final judgment for the full amount claimed, followed by enforcement and recovery of the client’s rights
Background of the Dispute
The dispute arose from a SAR 2 million construction and maintenance contract, under which approximately SAR 1 million in payment certificates remained unpaid despite completion of the works.Atyar Advocates and Legal Consultants represented the client in proceedings, addressing disputes over the contract, signing authority, approval of payment certificates, and completion of the works.The client’s entitlement was ultimately established, resulting in a final judgment requiring payment of the full claimed amount. The judgment was upheld on appeal, followed by enforcement proceedings before the Enforcement Court in Riyadh.
Contract Value
Outstanding Amount
Approximately SAR 1 million
Nature Works
Construction and maintenance works
Subject Claim
Unpaid payment certificates
Nature of the Contractual Dispute
The dispute centred on establishing the client’s entitlement to outstanding payment certificates for completed construction and maintenance works, despite multiple objections raised by the counterparty.
The principal matters addressed included:
- Reviewing the construction contract.
- Assessing the agreed scope of works.
- Establishing completion of the works.
- Reviewing the payment certificates.
- Assessing the authority of persons signing relevant documents.
- Reviewing the effect of the manually executed contract.
- Responding to the denial of the engineer’s approval of the payment certificates.
- Responding to allegations that the works had not been completed.
- Identifying the outstanding amounts.
- Preparing pleadings and legal memoranda.
- Following the matter through the appellate stage.
- Enforcing the final judgment and recovering the awarded amounts.
Essential Elements of the Dispute
Construction Contract
Reviewing the agreement governing the relationship and identifying the respective contractual obligations of the parties.
Completed Works
Establishing that the client performed the construction and maintenance works forming the basis of the financial claim.
Payment Certificates
Reviewing the payment certificates and connecting them with the completed works and outstanding sums.
Authority to Sign
Assessing the legal effect of documents signed by an employee of the counterparty whose authority to sign was disputed.
Company Responsibility for Its Employee
Developing the legal position concerning the company’s responsibility for acts undertaken by its employee within the context of the contractual relationship.
Enforcement of the Judgment
Following the judgment after appellate confirmation until the client’s awarded financial rights were pursued through the Enforcement Court.
Key Legal Challenges
Manually Executed Contract
One of the principal challenges was that the contract had been executed manually between the parties. This required careful review of its evidentiary value together with the surrounding documents, conduct of the parties, and performance of the project.
Disputed Signing Authority
The counterparty challenged the documents, alleging the employee lacked authority. The matter required legal arguments on the company’s responsibility for the employee’s acts within the commercial relationship.
Denial of the Engineer’s Approval
The counterparty denied that the engineer had approved the payment certificates. This required careful assessment of the supporting documents and surrounding facts establishing the client’s entitlement.
Dispute Over Completion of the Works
The counterparty alleged that the client had not completed the full scope of the agreed project works. It was therefore necessary to establish performance and connect the completed works with the payment certificates and amounts claimed.
Preserving the Judgment on Appeal
After judgment was issued in the client’s favour, the matter continued before the Court of Appeal until the judgment was upheld.
Recovery Following Final Judgment
The legal work extended beyond obtaining a final judgment to enforcement proceedings aimed at converting the judicial award into actual recovery for the client.
Our Legal Strategy
Reviewing the Contract and Supporting Documents
The legal work began with review of the construction contract, payment certificates, correspondence, and all documents relating to performance of the works.
Establishing Completion of the Project Works
The facts and documents supporting completion of the construction and maintenance works were organised and presented as part of the client’s legal position.
Addressing the Signing Authority Issue
The counterparty’s objection concerning the employee who signed relevant documents was analysed, and the client’s legal position concerning the company’s responsibility for its employee was developed.
Establishing the Payment Certificates and Outstanding Amounts
The payment certificates were connected with the completed works and the amounts due, and the financial claim was structured on that basis.
Managing the Litigation and Appeal
The proceedings were managed through the preparation of pleadings, submissions, and legal memoranda until judgment was obtained, followed by representation before the Court of Appeal until the judgment was upheld.
Enforcement and Recovery
After the judgment became final, enforcement proceedings were pursued before the Enforcement Court in Riyadh to recover the client’s awarded financial rights.
Legal Services Provided
Legal Advice
Providing advice concerning the construction contract, payment certificates, outstanding entitlements, and available legal remedies.
Comprehensive Legal Study
Reviewing the contract, facts, supporting documents, and the client’s legal position before and during the proceedings.
Litigation
Managing the claim and representing the client in establishing entitlement to the full amount of the unpaid payment certificates.
Representation Before Competent Authorities
Representing the client throughout the judicial and enforcement stages of the dispute.
Drafting Pleadings and Legal Memoranda
Preparing the statement of claim, legal memoranda, responses, and submissions required to support the client’s position.
Enforcement of the Judgment
Following enforcement proceedings before the Enforcement Court to recover the amounts awarded to the client.
Legal Insight
In construction disputes, the existence of a formally drafted contract is not the only factor relevant to determining the parties’ rights. The complete contractual relationship, project documents, performance records, and conduct of the parties may all be relevant to establishing entitlement.Similarly, a challenge to an employee’s authority or to the validity of payment certificates does not necessarily defeat a claim where the completed works and the company’s responsibility can be established through the available evidence and surrounding circumstances.Enforcement also remains an essential part of a financial claim because the practical objective is not merely to obtain a judgment, but to convert the judgment into actual recovery.
Legal Value Delivered to the Client
- Established completion of the construction and maintenance works.
- Established entitlement to the unpaid payment certificates.
- Addressed the challenge to the authority of the employee who signed relevant documents.
- Obtained judgment for the full amount claimed.
- Preserved the judgment through the appellate stage.
- Pursued enforcement of the judgment and recovery of the client’s awarded financial rights.
The Firm’s Experience in Construction and Payment Certificate Disputes
Atyar Advocates and Legal Consultants provides legal services in construction and maintenance disputes and financial claims arising from completed project works.The firm’s services include review of contracts and payment certificates, analysis of evidence establishing completion of works, and development of claims for unpaid contractual entitlements.The firm also prepares pleadings and legal memoranda, represents clients before the competent courts, manages matters through appeal, and pursues enforcement of final judgments to recover awarded financial rights.
Legal Team Responsible for This Matter
Prof. Dr. Turki Al-Tayyar
Founder and Managing Partner, and an expert in the judiciary, legal practice, arbitration, and university education, with more than 25 years of combined experience.
Mr. Salem Saad Al-Dosari
Partner specialising in administrative contracts, investment, and litigation, with extensive experience in administrative and commercial cases.
Practice Areas Related to This Matter
- Real Estate Dispute Resolution
- Property Ownership Claims
- Litigation Before the General Courts
- Investment Disputes
- Government Contracts and Administrative Matters
- Compensation Claims
Need Legal Support to Recover Outstanding Construction or Maintenance Payments?
If your company has completed construction or maintenance works but payment certificates or contractual amounts remain unpaid, Atyar Advocates and Legal Consultants provides legal advice, comprehensive legal studies, litigation, drafting, appellate representation, and judgment enforcement services throughout Saudi Arabia.
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بيانات الاتصال
- شارع التخصصي، النخيل، الرياض 12384
- 3132 شارع الأمير تركي، الكورنيش، 6309, الخبر
- Info@al-tayyar.com.sa
- 00966555398969
مجالات الممارسة
القانون التجاري والشركات
صياغة العقود والوثائق القانونية
القانون المالي والمصرفي
الضرائب والزكاة والجمارك
العقارات والملكية الخاصة
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