Introduction
Construction projects involve a wide range of contractual relationships, complex technical obligations, and significant financial exposure. Disputes in this field frequently arise from issues relating to delay, variations, extra works, non-payment and defective performance. The resolution of such disputes often depends on a careful reading of contractual provisions and the timely preservation of rights under Cyprus law.
At Papantoniou & Papantoniou LLC, the Dispute Resolution and Construction Law Department regularly advises employers, contractors, and subcontractors on the proper management of construction claims. Experience has shown that early legal intervention is the most effective method of firstly safeguarding rights and secondly preventing disputes from escalating into costly and prolonged proceedings.
Nature and Classification of Construction Claims
A construction claim constitutes a formal assertion by one contracting party for an additional entitlement arising during the execution of a project. Such claims may concern an extension of time, compensation for delay or disruption, additional payment for variations, or rectification of defects.
The procedural framework for the submission and evaluation of claims is typically set out in the construction contract, which may adopt standard forms such as those issued by the International Federation of Consulting Engineers (FIDIC) or E2(A) Form of Main Contracts for Building Projects (With or Without Quantities) by MEDSK. Under Cypriot law, the enforceability of a claim depends on compliance with contractual requirements regarding notice, substantiation, and time limits. Failure to observe these requirements can result in the forfeiture of an otherwise valid entitlement.
The Role of Early Legal Advice
Early legal advice ensures that the parties to a construction contract understand their respective rights and obligations from the outset. Counsel can assist in the interpretation of contractual clauses governing payment, risk allocation, extensions of time, and variations.
Legal involvement at an early stage allows for the drafting of compliant notices, the maintenance of contemporaneous records, and the negotiation of potential adjustments before a disagreement matures into a dispute. It also facilitates compliance with procedural conditions precedent, which are often strictly applied by the courts and arbitral tribunals.
By engaging legal advisors before matters deteriorate, parties are better positioned to preserve evidence, manage correspondence strategically, and maintain commercial relationships while protecting their legal position.
Consequences of Delayed Legal Intervention
When lawyers are instructed only after a dispute has become entrenched, the scope for effective resolution differs. Critical time limits may have expired, contractual preconditions may not have been satisfied, and factual evidence may no longer be available. In such circumstances, the dispute is more likely to proceed to litigation or arbitration, with attendant costs and risks.
The courts of Cyprus have consistently emphasised that parties are bound by the procedural mechanisms contained in their contracts. Late attempts to remedy procedural deficiencies are seldom successful and often lead to adverse cost consequences.
Frequent Errors in the Management of Construction Claims
The most common deficiencies observed in construction projects include the failure to issue written notices of delay or variation within the prescribed time, the execution of extra works without written authorisation, reliance on informal communications lacking probative value, and misunderstanding of clauses relating to liquidated damages or force majeure.
Each of these shortcomings can materially affect the outcome of a claim. Proper contract administration and early consultation with legal counsel are essential to avoid such pitfalls.
Our Experience
Papantoniou & Papantoniou LLC has represented contractors and subcontractors in a wide range of construction disputes, including claims arising from public infrastructure projects and private developments. The firm has successfully negotiated settlements and secured judicial remedies for unpaid works and variations, as well as defended employers against unfounded or exaggerated claims.
Our practice combines detailed knowledge of construction law with practical experience of the industry’s technical and commercial realities. This enables us to provide comprehensive advice from contract formation through to dispute resolution.
Contact Our Construction Law Team
For legal support in construction contracts, procurement, project finance, or dispute resolution, contact our specialised team today.
Papantoniou & Papantoniou LLC
📍 Katsoni 8, Ayioi Omoloyites, Nicosia, Cyprus
📞 +357 22817711
📧 info@paplaw.com.cy
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