Construction Contract Payment Claim

Carrying out construction contracts can sometimes lead to payment disputes, especially when one party delays or refuses to pay amounts that have become due.

In such cases, the contractor may take legal action to recover the outstanding amounts.

In this article, we explain how to file a Construction Contract Payment Claim, the main legal requirements involved, and provide a ready-to-use legal claim template for reference.

Have you completed your obligations under a construction contract but are facing delayed payment or a refusal to pay the amounts due to you? Protect your project’s cash flow before payment delays affect your business.

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Construction Contract Payment Claim

A Construction Contract Payment Claim is a legal claim filed by a contractor, or another party responsible for carrying out the contract, against the employer or project owner to recover an agreed contractual amount that has become due but remains unpaid.

The claim may also include compensation for losses caused by delayed payment. These losses may include additional financial costs or extra expenses incurred by the contractor because the other party failed to comply with the agreed contractual terms.

If the parties cannot reach an amicable settlement after a formal legal notice has been served, the contractor may proceed with court action. Filing the claim generally involves the following steps:

1. File the statement of claim.
2. Identify the court with proper jurisdiction.
3. Pay the applicable court fees.
4. Follow the court proceedings until a judgment is issued.

If the defendant fails to comply with the judgment, the successful party may start compulsory enforcement proceedings. These measures may include attaching the defendant’s funds or assets to recover the amounts awarded by the court.

The time required to resolve the case may vary depending on several factors, including:

• The value and complexity of the dispute.
• The defendant’s response and participation in the proceedings.
• The court’s caseload.

Legal Requirements for a Contractor Payment Claim

To succeed with a Construction Contract Payment Claim in Bahrain, several key legal requirements should be established. Discussing these points with a financial disputes lawyer can help ensure that the claim is properly prepared and supported before it is filed with the court.

The main requirements include:

1. A valid and documented construction contract:

A formal contract should establish the relationship between the contractor and the employer or project owner and clearly set out:

• • • The scope and nature of the agreed works.
    • The contract value and payment schedule.
    • The agreed completion period.

2. Completion of the agreed works:

The contractor must be able to show that the required works were carried out in accordance with the contract. This may be established through:

• • • • • Progress and completion reports.
        • Photographs showing the progress of the works.
        • Partial or final acceptance certificates issued by the employer, project owner, or supervising engineer.
        • Invoices for purchased materials or labour contracts used for the project.

3. The payment became due but was not paid:

The contractor should establish that the relevant contractual obligations were fulfilled and that the employer failed to make payment when it became due. Evidence may include:

• • • Unpaid invoices.
    • Bank statements.
    • Formal correspondence requesting payment.

4. Serving a formal legal notice demanding payment:

Before filing the claim, it is generally advisable to send the employer or project owner a formal notice requiring payment of the outstanding amount within a specified period.

5. Filing the claim before the competent court

The claim must be filed before the competent civil or commercial court in Bahrain, together with all documents and evidence supporting the contractor’s position.

Construction Contract Payment Claim Template

Below is a sample claim prepared for use as a general reference when seeking outstanding payments arising from the performance of a construction contract. A debt collection lawyer in Bahrain can review and adapt the document to the facts of each case:

The Honourable President of the Civil Court
Kingdom of Bahrain,

Claimant:

Personal ID Number:

Address:

Telephone Number:

Defendant:

Personal ID Number:

Address:

Telephone Number:

Subject: Construction Contract Payment Claim

Facts of the Claim:

Under a construction contract entered into on /   /   /        between the Claimant and the Defendant, the Claimant agreed to carry out the works specified in the contract in accordance with the agreed requirements and specifications. These works included (details of the completed works), for a total contract price of (agreed amount in Bahraini Dinars).

The Claimant completed the agreed works within the contractual schedule and delivered them in accordance with the required specifications. Final Invoice No. (invoice number) was issued on /   /   /       .

Despite this, the Defendant failed to pay the outstanding amount of (amount due in Bahraini Dinars), even after repeated payment requests. The latest request was made through the formal legal notice served on /   /   /       .

Legal Grounds:

Article (128) of the Bahraini Civil Code provides that the contract is binding upon the parties. Accordingly, the Defendant is legally required to perform the financial obligations arising from the contract.

Under Bahrain’s Civil and Commercial Procedures Law, the Claimant is entitled to bring court proceedings to recover the financial rights and amounts due.

Relief Sought:

Based on the above, the Claimant respectfully requests that the Honourable Court:

1. Order the Defendant to pay the outstanding amount of (amount in Bahraini Dinars).
2. Order the Defendant to pay any legal interest due as a result of the delay in payment, calculated from the due date until full payment.
3. Order the Defendant to bear all court fees and legal costs, including lawyers’ fees.
4. Award appropriate compensation for any loss or damage caused by the delayed payment, as determined by the Honourable Court.

Respectfully submitted,

Claimant:

Signature:

Date: /    /    /

Frequently Asked Questions

In conclusion, if you are a contractor and have not received the payments due to you, taking the appropriate legal steps may help protect your contractual and financial rights.

Working with a lawyer in Bahrain can make the process of recovering outstanding amounts clearer and more efficient. Address payment disputes early so that unpaid invoices do not place unnecessary pressure on your business or disrupt the continuity of your projects.

Lawyer Abdulrahman Khalifa

A Bahraini lawyer and the founder of a legal consultancy firm established in February 2019. He holds a Higher Degree in Sharia and Law from Al-Azhar University. He has extensive experience in court representation and providing legal advice in criminal, personal status, civil, and commercial matters. He is known for delivering clear, practical, and effective legal advice aimed at protecting his clients’ rights and interests, and has achieved tangible results in notable cases, including commercial litigation and inheritance matters