Introduction
A prominent Italian engineering and construction company involved in large-scale public infrastructure works encountered significant contractual difficulties during the execution of a project in Algeria. The issue arose when a local subcontractor failed to deliver on key contractual obligations, threatening delays and reputational exposure with the supervising public authority.
The Challenge
The client was facing potential multimillion-euro consequences due to halted construction activities, compounded by strained relations with a key government stakeholder. The lack of cooperation from the subcontractor risked triggering breach claims and undermining the viability of the broader engagement.
Our Strategy
Fares Legal conducted a comprehensive contractual risk review to assess exposure and identify remedial strategies. Prioritizing project continuity and client protection, our legal team:
- Engaged in structured dialogue with the counterpart to de-escalate the conflict
- Clarified performance expectations and interpreted contractual terms to establish legal footing
- Advised on remedial clauses and drafted a corrective protocol allowing project resumption
The Result
The project was successfully reactivated with no additional delay penalties, and the client’s contractual standing was preserved. The risk of contentious litigation was avoided, and relations with the public works authority remained intact. The resolution reinforced the client’s position as a reliable international contractor within Algeria.
Conclusion
This case underscores Fares Legal’s ability to provide fast-moving, high-stakes contractual dispute mitigation for international infrastructure actors operating in the region. Our strategic intervention enabled the client to maintain operational continuity while safeguarding their legal and commercial exposure.