Atayyar Legal Company

Case Study

Dispute Value

Recovery of Outstanding Construction Payments of Approximately SAR 1 Million and Full Enforcement of the Judgment

SAR 5,000,000

Atyar Advocates and Legal Consultants represented a private contracting company in a SAR 1 million construction claim arising from a SAR 5 million contract. Services included legal advice, litigation, representation, drafting pleadings, and judgment enforcement. The case was successfully concluded before the Commercial Court, with the judgment upheld on appeal and the full awarded amount recovered.

Quick Matter Overview

Contract Value

Approximately SAR 5 million

Amount Claimed

Approximately SAR 1 million

Nature of the Dispute

Financial claim arising from completed construction works

Duration of the Matter

Approximately one and a half years

Judicial Route

Commercial Court, Court of Appeal, and Enforcement Court

Outcome

Successful judgment, appellate confirmation, full enforcement, and recovery of the entire awarded amount

Background of the Dispute

The matter arose from a financial dispute between two contracting companies under a construction contract valued at approximately SAR 5 million.The client had completed the works required under the contractual relationship, but approximately SAR 1 million remained outstanding and unpaid by the other party despite completion of the relevant works.As payment was not made, it became necessary to move from contractual demand to judicial proceedings in order to establish completion of the works and the client’s entitlement to the outstanding amounts.Atyar Advocates and Legal Consultants reviewed the contractual documents, project records, and supporting evidence, developed the client’s legal position, commenced the claim before the Commercial Court, and managed the proceedings through to judgment.Following the first-instance judgment in the client’s favour, the matter was pursued before the Court of Appeal until the judgment was upheld, after which enforcement proceedings were initiated and continued until the client received the full amount awarded.

Professional legal-themed image representing a financial dispute between two contracting companies, featuring contracts, documents, and architectural elements that reflect commercial litigation and unpaid dues.

Contract Value

Approximately SAR 5 million

Outstanding Amount

Approximately SAR 1 million

NatureWorks

Construction works

Subject Dispute

Non-payment of amounts due for completed works

Nature of the Contractual Dispute

The dispute concerned the client’s claim for payment of amounts due in consideration for construction works that had already been completed, where the counterparty failed to pay the outstanding contractual entitlement.

The legal work required attention to the following matters:

Key Legal Challenges

Establishing Completion of the Works

It was necessary to prove that the client had completed the works required under the contractual relationship, as this formed the basis of the claim for payment.

Establishing the Outstanding Amount

The matter required identification of the amounts remaining due and linking those amounts to the completed works and supporting documents.

Building a Coherent Financial Claim

The contract, facts, documents, and claimed amounts had to be organised into a legally coherent claim before the Commercial Court.

Preserving the Judgment on Appeal

After the first-instance judgment was issued in the client’s favour, the matter required continued legal work before the Court of Appeal to preserve the basis of the judgment until it was upheld.

Enforcement Challenges

The legal work did not end with obtaining the judgment. It also required commencement and active management of enforcement proceedings before the Enforcement Court.

Multiple Debts of the Judgment Debtor

Enforcement was challenging due to multiple debts against the judgment debtor, but the process continued until the client’s full entitlement was recovered.

Our Legal Strategy

Reviewing the Contract and Facts

The matter began with a detailed review of the contractual relationship, the works completed, and the amounts that remained unpaid.

Organising the Evidence

The supporting documents evidencing completion of the works and the financial entitlement were organised and linked to the factual basis of the claim.

Developing the Legal Position

A structured legal position was prepared demonstrating the client’s performance of its obligations and its entitlement to the unpaid contractual amounts.

Managing the Commercial Court Proceedings

The claim, pleadings, memoranda, and advocacy were prepared and managed before the Commercial Court to establish the client’s rights.

Defending the Judgment on Appeal

Following the first-instance judgment, the legal team continued to represent the client before the Court of Appeal until the judgment was upheld.

Enforcement and Recovery

The judgment was transferred to the Enforcement Court, and the enforcement process was actively pursued despite the judgment debtor’s multiple outstanding debts until the entire awarded amount was recovered and delivered to the client.

Legal Services Provided

Legal Advice

Providing advice concerning the unpaid entitlements arising from the construction contract and the appropriate legal route for recovery.

Comprehensive Legal Study

Reviewing the contract, project performance, supporting documents, and the client’s legal position before and during the dispute.

Litigation

Managing the claim and advocacy required to establish the client’s entitlement to payment for completed construction works.

Representation Before Competent Authorities

Representing the client throughout the judicial and enforcement stages connected with the claim.

Drafting Pleadings and Legal Memoranda

Preparing the statement of claim, legal submissions, responses, and memoranda required to support the client’s position.

Enforcement of the Judgment

Following enforcement proceedings until the full amount awarded by the court was recovered and delivered to the client.

Legal Insight

In construction disputes, it is not enough to establish the existence of a contract. The financial claim must be connected to the works actually performed and supported by evidence demonstrating the contractor’s entitlement to payment.Similarly, obtaining a favourable judgment does not necessarily mark the end of the matter if the judgment has not yet been enforced and converted into actual recovery.Where a judgment debtor has multiple creditors or outstanding liabilities, careful management of the enforcement stage becomes an essential part of achieving the practical result of the case.

Legal Value Delivered to the Client

The Firm’s Experience in Construction Disputes and Financial Claims

Atyar Advocates and Legal Consultants provides legal services in construction disputes and financial claims arising from commercial contracts, including review of contracts and project documentation, establishment of completed works, and recovery of outstanding payment entitlements.The firm’s services include drafting pleadings and legal memoranda, representing clients before the competent courts, and managing matters through the appellate process.The legal work can also extend into the enforcement stage, ensuring that a successful judgment is pursued through to actual recovery of the amounts awarded.

Legal Team Responsible for This Matter

Dr. Turki altayyar

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

Need Legal Support to Recover Outstanding Construction Payments?

If your company has completed construction works and payment remains outstanding, Atyar Advocates and Legal Consultants provides legal advice, comprehensive legal study, litigation, legal drafting, appellate representation, and judgment enforcement services throughout Saudi Arabia.

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