Distressed contracts and projects
Introduction
Rescuing, restructuring or exiting contracts and projects hit by delay, cost overruns or a party's financial distress.
When a contractor, supplier or customer runs into trouble, the contract becomes the battleground. The questions come quickly: can we terminate, call the guarantees, step in, novate the contract to someone else, or keep the project alive on new terms?
The answers depend on the contract and on Saudi law. The Civil Transactions Law allows a court to reduce an obligation made excessively burdensome by exceptional circumstances, and government contracts give the contracting entity specific powers, such as withdrawing the work from a defaulting contractor.
We act for owners, contractors, lenders and suppliers. We assess their options quickly, negotiate standstills, revised programmes and payment arrangements, or exits that limit the loss, and pursue claims where negotiation fails.
How we help
What the work covers
Options review
Termination, guarantees, step in and novation rights under the contract.
Rescue terms
Revised programmes, payment plans and new money to complete the project.
Exit
Orderly termination, handover and replacement of the contractor or supplier.
Claims
Claims and defences on guarantees, delay and termination.
Contact