Society of Construction Law, Bangladesh

Introduction to Construction Law and the Role of a Construction Lawyer

Construction law is a specialized branch of law applicable to Construction Projects & Engineering, which usually consists of contract law, commercial law, land use, and legislation relating to building planning, labour and employment law, and laws relating to tortious liability.[1]

The acts, which are falls under the domain of Construction law in Bangladesh are, the Contract Act 1872; the Building Construction Act 1952; the Building Construction Rules 1996; the Private Residential Project Land Development Rules 2004; the Public Procurement Act 2006; the Public Procurement Rules 2008; the Dhaka Metropolitan Building (Construction, Development, Preservation and Demolition) Rules 2008; the Real Estate Development and Management Act 2010; the Acquisition and Requisition of Immovable Property Act 2017; the Bangladesh Economic Zones (Construction of Building) Rules 2017; the Bangladesh National Building Code 2020.[2]

Additionally, Public Procurement Act 2006 and Public Procurement Rules 2008 govern the construction works and services procured with public funds by the government. These include works like railways, roads, and infrastructure and services like excavation and maintenance.[3] Large-scale public infrastructure projects are enabled by the government through public-private partnerships (PPPs) to attract foreign investment. Construction and government-to-government partnership PPP projects are governed by multiple legislations such as, the Public Private Partnership (PPP) Act 2015; the Policy for Implementing PPP Projects through Government to Government (G2G) Partnership 2017; the Procurement Guidelines for PPP Projects 2018; the Guidelines for Unsolicited Proposals 2018; the National Priority Project Rules 2018; the Rules for Public Private Partnership Technical Assistance Financing 2018; and the Rules for Viability Gap Financing for Public Private Projects 2018.[4]

Hence, the following are the key elements of construction law:

  • Contract Law: Regulates contracts between parties (e.g., contractors, clients, financiers) to specify the scope and timeframes of the work as well as responsibilities. The Contract Act 1872 forms the basis of the enforceable construction contracts in Bangladesh.
  • Tort Law: Handles negligent cases, including workplace accidents or construction faults. As an illustration, the Rana Plaza case of 2013 signalled the necessity of strong tort liability systems.
  • Arbitration: Helps handle disputes beyond the slow judicial systems, usually by employing standards such as those of the International Federation of Consulting Engineers (FIDIC).
  • Commercial Law: Governs the financial dealings, such as project funding and invoice issues, which are vital in developing a mega project like the Dhaka Metro Rail.
  • Employment Law: It confirms the safety and rights of the workers, which are enforced by legislation, such as the Bangladesh Labour Act of 2006.

The Role of a Construction Lawyer

Construction lawyers are designated lawyers who give necessary help and support in the field of construction. Their professionalism will help projects to be within the government jurisdiction, eliminate risk, and solve problems efficiently. The following is a detailed description of their functions and duties as compiled through a synthesis of the main issues concerning construction law.[5]

Contracts Writing and Revision

The contracts used in construction projects should be carefully written since they determine the expectations and safeguard all parties in case of disagreements. The construction lawyers prepare, negotiate contracts, and review them to ensure their clarity, fairness, and chances of being enforceable in courts. Such contracts cover the most vital information, including the scope of work, timeframes, payment conditions, as well as references to possible errors like delays or alterations. Lawyers also avoid what could be an underlying source of conflict, which is the ambiguity of language, by being very specific. They find possible risks, adjust the documents as necessary, and make sure that contracts protect the interests of their clients all over the project lifecycle.[6]

Securing Compliance with Laws and Regulations

The building industry is regulated and controlled by a network of federal, state, and local regulations that encompass codes on buildings, environmental regulations, zoning laws, safety guidelines, and licensing. Construction attorneys guide clients on how to keep out of these regulations in order to escape penalties or fines, as well as suspension of work.[7] They complete the required permits on projects, environmental compliance, and other safety and zoning standards. They offer proactive legal counsel that keeps clients on the proverbial straight and narrow at the beginning of the project, thus costing time, money, and their reputation.

Handle Construction Disputes

Most often, in construction, you may find disputes arising with regard to payment disputes, delays in the projects, poor workmanship or even disputes on the interpretation of a contract. Construction lawyers help their clients solve these conflicts by negotiating, mediation, arbitration or litigation. They study deals and applicable laws so as to advise the most appropriate course of action they can take, to promote the interests of their clients to reach equitable testimonies. When attempting to negotiate the settlement on excusable delays or when a client is sued on nonconforming work, the goal of the lawyer is to make the projects run smoothly, but at the same time equal the rights of their clients.[8]

Management of Construction Claims

Such claims are necessary to construction, where one party tries to get compensation of a defective material, work done or delayed. Attorneys assist individuals in making or defending claims through compilation of evidence, legal assessment of validity and costs quantification.[9] Typical allegations are payment disputes, delay costs, change order disputes, poor quality or defective work, and matters regarding the unexpected site conditions. The construction lawyers endeavour to achieve positive results by making solid claims, either in seeking payment or shielding against unfounded claims.[10]

Lien of Mechanics Management

Mechanic liens are legal instruments that complicate a property owner by enabling contractors, subcontractors, or suppliers to make themselves paid by giving a bond on a property. Construction lawyers help clients through the lien process so as to make sure that the state specific requirements are followed, including the deadline time of filing the lien, and making a notice among other requirements.[11] They help file valid liens to secure their right to payment or assist property owners to clear the wrongly recorded liens. Lien waivers and foreclosure actions are also dealt with by lawyers who protect the interests of payments and properties.[12]

Insurance Matters Advice

Insurance plays a very important role in construction to cover such risks as accident, property damage or liability. The construction lawyers check insurance policies in order to define coverages, limits, deductibles, and exclusions. They help their clients in filing claims and coverage disputes as well as issues related to additional insured status or the builder risk policies. Lawyers can reduce financial risks by providing clients with the necessary knowledge about what they should pay and what their rights are so that in case any unimaginable event happens there is no financial risk.

Construction law is a specialized area of law that regulates different facets of construction projects in Bangladesh, such as contracts, disputes, compliance, and risk management. Construction lawyers are important to ensure the successful completion of projects and reduce legal risks. Their services range from contract drafting, ensuring compliance with regulations, dispute resolution, construction claims management, mechanic’s liens, and providing guidance on insurance. With the growth of the construction sector, the demand for experienced construction attorneys will continue to be high, as their aptitude for interpreting legislation, reducing risks, and resolving disputes effectively results in a legally compliant construction industry.

Disclaimer:

The articles published on The Society of Construction Law Bangladesh (SCLBD) website are intended for research and educational purposes only. They are written in good faith to promote knowledge and understanding of construction law. No part of these articles may be reproduced, distributed, or used for any commercial purpose without prior written permission from SCLBD. While every effort has been made to ensure the accuracy of the information, Readers are advised to consult legal professionals for advice on particular matters.

[1] Philip L. Bruner, Construction Law: Its Historical Origins and its Twentieth Century Emergence as a Major Field of Modern American and International Legal Practice, 75 Ark. L. Rev. (2022). Available at: https://scholarworks.uark.edu/alr/vol75/iss2/3.

[2] Dr Kamal Hossain and Associates, “Construction Law 2025 – Bangladesh | Global Practice Guides | Chambers and Partners” <https://practiceguides.chambers.com/practice-guides/construction-law-2025/bangladesh>.

[3] ibid.

[4] ibid.

[5] “What Is Construction Law? | University of Law” <https://www.law.ac.uk/employability/legal-practice-areas/construction-law/>.

[6] Wall, Ray, Nii Ankrah, and Jennifer Charlson. “An investigation into the different styles of the lawyer and construction specialist when mediating construction disputes.” International journal of law in the built environment 8, no. 2 (2016): 137-160.

[7] ibid.

[8] ibid.

[9] Flood, John, and Andrew Caiger. “Lawyers and arbitration: The juridification of construction disputes.” Mod. L. Rev. 56 (1993): 412.

[10] ibid.

[11] Brooker, Penny. “Survey of construction lawyers’ attitudes and practice in the use of ADR in contractors’ disputes.” Construction Management & Economics 17, no. 6 (1999): 757-765.

[12] ibid.

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