Atayyar Legal Company

  • Al Takhassousi, An Nakheel, Riyadh 12384
  • info@al-tayyar.com.sa
  • 0555398969
Youtube X-twitter Linkedin-in Instagram Facebook
Book Consultation

Case Study

Institutional Mediation Resolves a Construction, Interior Fit-Out, and Artistic Works Dispute Exceeding SAR 5 Million

Dispute Value

SAR 5,000,000

A contractual dispute arose concerning the design, manufacture, and installation of bespoke wooden interior works for a private residential project, valued at over SAR 5 million, with claims exceeding SAR 2 million.Under the parties’ mediation agreement, the matter was referred to the Saudi Center for Commercial Arbitration, which appointed a neutral mediator. The dispute involved contract extensions, outstanding works, technical defects, and additional works, and concluded with an amicable settlement.

Case at a Glance

Nature of the Dispute

Construction, interior fit-out, and artistic works

Value of the Works

More than SAR 5 million

Claim Value

More than SAR 2 million

Dispute Resolution Method

Institutional mediation

Appointing Institution

Saudi Center for Commercial Arbitration

Outcome

Amicable settlement reached by mutual consent

Background of the Dispute

A contractual dispute arose concerning the design, manufacture, and installation of bespoke wooden interior works for a private residential property. The parties disagreed over the contractual period, completion of outstanding works, quality issues, technical defects, and additional works arising from a subsequent quotation.Pursuant to the contract’s mediation agreement, the dispute was referred to the Saudi Center for Commercial Arbitration, which appointed Prof. Dr. Turki Al-Tayyar as a neutral mediator. The mediation addressed the interconnected issues of time extension, incomplete works, defect rectification, and additional works, ultimately resulting in an amicable settlement accepted by both parties.

نزاع مقاولات وديكورات خشبية بشأن التصميم والتصنيع والتركيب في الرياض

Type of Contract

Construction Works Contract

Nature Works

Wood Interior Works

Project Type

Private residential project

Mechanism

Institutional mediation

Nature of the Mediation and Construction Dispute

Multi-Issue Contractual Dispute Involving Interior Design and Fit-Out Works, Including Time Extensions, Defects, and Additional Works

The mediation involved analysing the parties’ positions, identifying key disputes, reviewing contractual and technical obligations, and guiding negotiations toward a mutually acceptable resolution.

  • Reviewing the construction contract.
  • Identifying the scope of the design works.
  • Reviewing manufacturing obligations.
  • Analysing installation works.
  • Assessing the request for an extension of time.
  • Reviewing outstanding works.
  • Analysing the alleged technical defects.
  • Assessing rectification requirements.
  • Reviewing additional works.
  • Analysing the subsequent quotation.
  • Conducting the mediation sessions.
  • Reaching an amicable settlement.

Essential Elements of the Dispute

Contract Period

Assessing the request to extend the contractual period for completion of the project.

Outstanding Works

Identifying the contracted works that remained incomplete.

Technical Defects

Reviewing the issues alleged in relation to manufacturing and installation quality.

Additional Works

Addressing claims connected with further works under a subsequent quotation.

Financial Obligations

Reviewing the financial claims arising from the performance and additional works.

Contractual Settlement

Developing a consensual framework capable of resolving the various claims together.

Key Legal Challenges

Multiple Issues in Dispute

The disagreement extended beyond a monetary claim and included time, performance, quality, rectification, and additional works.

Disagreement Over Performance

The parties held different positions regarding which works had been completed and which obligations remained outstanding.

Alleged Technical Defects

The dispute involved issues concerning the quality of manufacturing and installation and the scope of required remedial works.

Extension of the Contract Period

It was necessary to address the legal and practical effect of extending the contractual term on the remaining obligations.

Additional Works Under a Later Quotation

The additional works introduced a separate contractual element that had to be reconciled with the original agreement.

Need for a Comprehensive Resolution

The mediation required a single settlement capable of addressing all principal issues rather than resolving each claim in isolation.

Our Mediation Strategy

Separating Each Disputed Issue

The dispute was divided into distinct issues concerning time, performance, defects, and additional works.

Reordering the Parties’ Priorities

The mediation focused on the issues of greatest practical importance to completing the project and ending the dispute.

Distinguishing Positions from Interests

The process moved beyond the parties’ stated claims and examined the practical interests that could be achieved through settlement.

Addressing Technical Issues Through the Contract

Manufacturing, installation, and rectification issues were considered by reference to the underlying contractual obligations.

Developing a Balanced Resolution

The mediation sought a settlement structure capable of addressing the parties’ competing obligations and claims.

Converting Negotiation into Settlement

The process concluded by translating the areas of agreement into a consensual settlement accepted by the parties.

Mediation Services Provided

Management of the Mediation Process

Conducting the mediation from appointment through conclusion.

Dispute Analysis

Identifying the contractual, technical, and financial matters in dispute.

Negotiation Management

Facilitating discussions between the parties independently and impartially.

Facilitating Agreement

Reducing the gap between the parties’ respective positions on performance and rectification.

Assessment of Settlement Options

Exploring practical alternatives for resolving each principal issue.

Amicable Resolution

Assisting the parties in concluding the dispute by mutual agreement.

Experience in Mediation and Specialist Construction Disputes

Atyar Advocates and Legal Consultants has experience in matters involvingmediation, arbitration, construction disputes, commercial and civil contracts, interior fit-out works, and alternative dispute resolution.The firm’s Founder also has experience acting as a neutral mediator in institutional disputes where the appointment is made by specialist arbitration and mediation institutions.

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.

Nature of the Mediation and Construction Dispute

The dispute concerned the design, manufacture, and installation of wooden interior works, with disagreements relating to the contractual term, completion of works, technical defects, and additional works.

The institutional mediation concluded with an amicable settlement.

  • Reviewing the contract.
  • Analysing the design scope.
  • Reviewing manufacturing works.
  • Reviewing installation works.
  • Assessing the extension request.
  • Identifying outstanding works.
  • Reviewing technical defects.
  • Discussing rectification works.
  • Reviewing additional works.
  • Analysing the subsequent quotation.
  • Conducting the mediation.
  • Concluding the dispute through settlement.

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 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.

Request a Legal Consultation

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

شركة الطيار للمحاماة والاستشارات القانونية

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

تابعنا

Youtube X-twitter Linkedin-in Instagram

النشرة الإخبارية

You have been successfully Subscribed! Ops! Something went wrong, please try again.

© 2025 All Right Reserved Al Tayyar Leagal company