International Law

Representing the interests of a construction company in a dispute with the Finnish side

By 12.11.2018 No Comments

In the framework of this dispute, the Finnish builders significantly delayed the construction period, and also violated the quality of work requirements. The objective of the client (the construction company) was to settle the dispute at the pre-trial stage, because otherwise, if there was to be an inconvenient arbitration clause in the contract, the client would have incurred substantial legal costs. Due to the fact that the initial transaction was structured under Russian law, our lawyers worked out a detailed legal position based on established judicial practice. Within the framework of this legal position, it was determined that the delay in the construction of the facility occurred solely due to the fault of the Finnish contractors, since the client provided them with all the original data and necessary materials in a timely manner and in full and provided full assistance during construction. As a result, after sending a formal claim and participation in negotiations, the client and his counterparty entered into a mutually beneficial supplementary agreement to the contract, securing the obligations of the contractor to eliminate all the deficiencies identified free of charge. In addition, this agreement corrected the unfavorable provisions for the client contained in the original contract, including the arbitration clause.