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ARKA Legal Services in Cayman Islands

Construction Law in Cayman Islands

Building and construction is an essential feature of a successful community. Construction law involves both the drawing of contracts to facilitate the projects, as well as the resolution of disputes.

Whenever commercial entities enter into contractual relations with one another for the purpose of undertaking any construction project, it is always a wise course to ensure that the agreement is fully documented. Such agreements should clearly define what the parties are entitled to do, and what they are required to refrain from doing. Although commercial contracts can be verbal, or implied, it is always best to ensure that they are written, and set out in a formal manner.

The resolution of construction disputes is a complex area of law, involving both the terms of the contract itself, as well as legislative regulation and decisions of the courts. Contractors and sub-contractors promise to perform work, in return for payment. Disputes most often arise when the quality of the work performed is alleged to be sub-standard, or there is a failure to pay the contractor for the work performed. Additional complexity can arise when the contractor is paid, but the money is not passed on to the sub-contractor. This raises the problem of how the sub-contractor can recover payment for work performed.