LegaTech’s Landmark Arbitration in Assaluyeh

Winning €34 Million and 41 Months of Excusable Delay: LegaTech’s Landmark Arbitration in Assaluyeh

Mastering Delay and Disruption Disputes: LegaTech’s Landmark Arbitration Success

In high-stakes construction projects, disputes over delays and disruptions can drastically affect budgets, timelines, and reputations. LegaTech recently led our client a contractor for two major petrochemical plants in Assaluyeh, Iran to a groundbreaking €34 million award and 41 months of excusable delay. By integrating legal and technical expertise, we secured a precedent-setting victory that highlights our innovative approach to delay analysis and disruption claims.

The Challenge: Delays and a Rigid EPC Lumpsum Contract

Our client operated under an EPC lumpsum contract, leaving little room for schedule flexibility. When the employer failed to:

• Provide essential inputs (e.g., licensor contributions, engineering documents)
• Respond promptly and adequately to contractor inquiries

A domino effect ensued, delaying critical project components and disrupting our client’s performance. Faced with 41 months of excusable delays, the contractor suffered significant operational setbacks and financial losses.

Our Approach: Technical Precision Meets Legal Strategy

1. Comprehensive Delay Analysis
   • Conducted an in-depth critical path assessment, mapping out how the employer’s shortcomings directly caused project delays.
   • Compiled over 8,000 pages of schedules, memos, and technical documents to substantiate each delay event.
2. Introducing Disruption Claims
   • Applied disruption analysis a rarely used concept in Iranian arbitration to quantify loss of efficiency and productivity losses.
   • Combined engineering data with persuasive legal arguments, ensuring the tribunal recognized the financial toll of repeated disruptions.
3. Advanced Scheduling Tools & Evidence
   • Leveraged innovative scheduling methods to pinpoint delay periods attributable to the employer.
   • Demonstrated our client’s proactive measures to mitigate delays, reinforcing the claim for excusable extensions.

The Verdict: €34 Million and 41 Months of Excusable Delay

The arbitral tribunal concluded that:

• Delays were largely the employer’s responsibility.
• Our client was entitled to 41 months of excusable delay, exempting them from penalties.
• The tribunal awarded €34 million to cover both delay-related costs and loss of efficiency from disruptions.

Why This Case Is a Milestone

• Precedent-Setting Disruption Claims: We successfully introduced disruption-based compensation in a jurisdiction where it had seen minimal application.
• Technical & Legal Synergy: Our cross-disciplinary approach effectively blended engineering data with strategic legal arguments.
• Client-Focused: Throughout the process, we prioritized our client’s rights, ensuring just compensation and a strong legal position for future contracts.

Choose LegaTech for Complex Construction Disputes

LegaTech’s success in this major Assaluyeh dispute underscores our commitment to innovation and precision in construction law. Whether you’re navigating critical path setbacks or seeking fair remedies for disruption, our team provides unparalleled expertise.

Ready to transform potential losses into remarkable victories?
Contact LegaTech today and experience how our legal-technical synergy can safeguard your interests and drive outstanding results.