Projects, Infrastructure & Energy

Litigation in the projects, infrastructure, and energy sectors involves legal disputes arising from complex development, construction, financing, operation, and maintenance activities. These disputes can pertain to contractual disagreements, delays, cost overruns, non-performance, environmental issues, regulatory compliance, and other project-specific concerns.

Common Types of Litigation in These Sectors

Construction Disputes

• • Delay Claims
• • Defects and Quality Issues
• • Variation Orders
• • Payment Disputes

Contractual Disputes

• • Breach of Contract
• • Termination Rights
• • Force Majeure Claims

Financial and Funding Disputes

• • Disagreements over financing arrangements
• • Payment defaults
• • Guarantees and securities

Environmental and Regulatory Disputes

• • Non-compliance with permits
• • Environmental damage claims
• • Licensing issues

Operational and Performance Disputes

• • Disputes over performance guarantees
• • Maintenance obligations

International Disputes

• • Cross-border issues involving multiple jurisdictions
• • Disputes under International Arbitration

Dispute Resolution Mechanisms

Negotiation and Settlement: Often the first step to resolve disputes amicably.
Mediation and Alternative Dispute Resolution (ADR): Promotes cost-effective and timely resolution.
Arbitration: Commonly preferred in international projects; governed by institutions like ICC, LCIA, or UNCITRAL.
Litigation: Filed in courts, often as a last resort, especially when other mechanisms fail or legal clarity is needed.

Key Considerations in Litigation

Jurisdiction and Choice of Law: Critical in international projects; parties often specify arbitration clauses.
Documentation and Evidence: Precise record-keeping is vital for proving claims.
Time and Cost: Litigation can be lengthy and expensive; alternative mechanisms are often preferred.

Trends and Challenges

• • Increasing use of arbitration and ADR in project disputes.
• • Complex multi-party disputes involving government agencies, contractors, financiers, and other stakeholders.
• • Growing emphasis on contractual risk allocation and force majeure clauses.
• • Environmental, social, and governance (ESG) considerations influencing dispute landscapes.