Disputed construction payment certificates and additional works claims are among the most serious financial challenges faced by contractors in Riyadh. When payment certificates are partially approved, delayed, or rejected, contractors often face immediate cash flow pressure that disrupts project timelines, supplier payments, and overall financial stability. In such cases, a Financial Claims Lawyer can help structure the claim properly and pursue recovery through enforceable legal procedures.
If your company is currently facing disputed payment certificates or unpaid additional works, we recommend reviewing our Financial Claims Service, where we explain how construction-related financial claims are pursued through structured legal procedures before the Saudi Commercial Courts or through arbitration—with legal action that can begin within 24 hours.
👉 Click the following link to go to the service page: Financial Claims Service
The following sections explain the most common causes of these disputes and how they are handled legally.
Who We Are & Our Practical Experience
At Mohammed Almuzayen Law Firm, we are a Riyadh-based law firm with over 15 years of practical legal experience in financial claims, debt recovery, and commercial disputes. Our work is built on direct legal practice—not theory or generic templates.
We have provided legal representation and advisory services to major national companies across multiple sectors, including Al Majdouie Group, Binzagr Company, United Mining Investment Company, Al Mawared (a listed joint-stock company), and Golden Petroleum Investment Company.
Through this hands-on legal work, we have handled high-value and complex financial claims, particularly disputes involving unpaid invoices, construction payment certificates, running accounts, and commercial contracts. This experience gives us a clear understanding of how delayed payments impact cash flow, operations, and long-term business stability.
Our office is located on Anas Bin Malik Road, Riyadh (Aalam Al-Manzel Building, 2nd Floor). We welcome you during business hours from 8:00 AM to 5:00 PM. To book a legal consultation or arrange an in-person appointment, please contact us at: +966 59 009 8800.
What Are Construction Payment Certificates and Additional Works Claims?
Construction payment certificates are formal documents issued by the employer, consultant, or engineer confirming the value of completed works during a specific period. These certificates form the basis for the contractor’s entitlement to payment.
Additional works claims arise when a contractor performs work outside the original scope of the contract, whether through formal variation orders or due to project requirements imposed during execution. Disputes commonly occur when such works are executed but later contested in terms of valuation, approval, or contractual entitlement.
Disputes Over Completion Percentages
One of the most common sources of conflict is disagreement over completion percentages. Contractors may complete works in accordance with specifications, while consultants assess lower completion rates.
These disputes typically arise due to:
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Differences in technical evaluation
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Lack of agreed measurement standards
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Disputes over partially completed activities
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Site conditions affecting execution
Incorrect or reduced completion percentages directly affect the value of certified payments and delay cash inflows.
Mr. Mohammed Almuzayen, as an experienced Financial Claims Lawyer and Commercial Arbitrator, consistently advises contractors to address completion percentage disputes early and in a structured manner. This includes ensuring that progress is supported by contemporaneous site records, measurement sheets, inspection reports, and correspondence that objectively reflect actual work performed.
He also emphasizes the importance of aligning progress claims with contractual measurement mechanisms and documenting any discrepancies between site reality and consultant assessments at the time they arise. Early legal structuring of these disputes helps prevent arbitrary reductions, preserves the contractor’s financial position, and strengthens the enforceability of payment claims if escalation to the Commercial Court or arbitration becomes necessary.
Delayed or Refused Approval of Payment Certificates
Delays in approving payment certificates are often used as an indirect means of postponing payment. In some cases, approvals are withheld without valid contractual justification.
Such delays may result from:
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Administrative bottlenecks
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Employer cash flow issues
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Consultant disputes unrelated to actual performance
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Pending variation or claim discussions
From a legal perspective, unjustified delays can form the basis of a financial claim, particularly where contractual timelines for certification are breached.
Variation Orders and Additional Works Disputes
Variation orders are a major source of construction disputes, especially where additional works are performed without formal written instructions.
Common issues include:
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Disagreement on whether the work qualifies as a variation
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Disputes over pricing and valuation methods
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Claims for additional works executed under site instructions
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Refusal to recognize oral or implied instructions
Without proper legal structuring, these claims are often rejected despite the work being completed.
From a practical and legal perspective, Mr. Mohammed Almuzayen, as a Financial Claims Lawyer, advises our clients to treat variation orders and additional works as potential financial claims from the outset—not as operational issues to be resolved later. As a matter of best practice, our clients should ensure that any additional work is immediately documented through contemporaneous site records, written instructions, correspondence, and valuation breakdowns, even where formal variation orders are delayed or disputed.
He also emphasizes that reliance on oral instructions or implied conduct, without supporting documentation and timely contractual notices, significantly weakens the enforceability of additional works claims. Early legal structuring of variation-related disputes allows our clients to align their claims with contractual valuation mechanisms, preserve entitlement, and strengthen their position if the dispute escalates to the Commercial Court or arbitration.
Legal Consultation for Construction Payment Disputes
If you are dealing with disputed construction payment certificates, delayed approvals, or unpaid additional works, a focused legal consultation can save you months of uncertainty and significant financial loss.
We offer a one-hour paid legal consultation with Mr. Mohammed Almuzayen—a Financial Claims Lawyer and Commercial Arbitrator with over 15 years of practical experience in construction disputes and financial claims matters. He is a core member of the Saudi Bar Association and a member of the Chartered Institute of Arbitrators (CIArb).
During this session, you will discuss your case directly with Mr. Almuzayen, who will review the contractual and evidentiary position and outline the most effective legal route—whether structured negotiation, formal demand letters, filing before the Saudi Commercial Courts, or pursuing the claim through arbitration.
This consultation is designed to provide clarity, direction, and a realistic recovery strategy, enabling you to make informed decisions before escalating the dispute or committing further resources.
👉 Book a one-hour legal consultation with Mohammed Almuzayen (575 SAR) to discuss your construction payment dispute and receive a clear legal action plan, For reservations, call 0590098800 .
Price Differences and Revaluation Claims
Construction projects are frequently affected by price fluctuations, especially in long-term contracts. Contractors may seek compensation for increased material or labor costs where permitted under the contract.
Disputes arise when:
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Price adjustment clauses are unclear
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Employers deny entitlement to revaluation
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Supporting cost evidence is disputed
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Timing requirements for claims are missed
Failure to comply with contractual mechanisms can weaken otherwise legitimate price difference claims.
Time Extensions and Their Impact on Financial Claims
Extensions of time are closely linked to financial entitlements. Delays caused by the employer, variations, or external factors often justify both time extensions and associated cost claims.
Disputes typically involve:
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Responsibility for delays
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Entitlement to prolongation costs
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Impact of delays on payment schedules
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Liquidated damages deductions
Without proper documentation and timely claims, contractors risk losing both time and financial entitlements.
Contractual Notice Requirements Linked to Construction Claims
Many construction contracts impose strict notice requirements for payment, variation, delay, and cost claims. Failure to comply with these requirements is one of the most common reasons claims are rejected.
Key issues include:
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Missing notice deadlines
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Improper form of notice
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Incomplete claim particulars
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Treating contractual notices informally
From a legal standpoint, notice compliance can determine whether a claim is enforceable or barred entirely.
How Construction Payment Certificate Disputes Are Handled Legally
Handling construction payment disputes requires a structured legal approach, not informal follow-ups. This typically involves:
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Reviewing the construction contract and payment mechanisms
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Analyzing payment certificates and supporting documentation
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Linking claims to contractual provisions and site records
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Preparing a consolidated financial claim file
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Issuing formal legal demands
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Initiating proceedings before the Commercial Court or through arbitration
Proper legal handling increases the likelihood of recovery and enforceability.
Common Mistakes Contractors Make in Payment Certificate Claims
Contractors often weaken their claims by:
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Delaying legal action
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Relying on informal communications
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Failing to document additional works properly
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Ignoring notice requirements
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Fragmenting claims instead of consolidating them
These mistakes can significantly reduce recovery prospects even where the claim is substantively valid.
Based on our practical experience, Mr. Mohammed Almuzayen advises our clients to approach payment certificate disputes as legal matters from the earliest stage, not as issues that can be corrected later through negotiation alone. Our clients are encouraged to seek early legal assessment to ensure that claims are consolidated, properly documented, and aligned with contractual notice and timing requirements.
He also emphasizes that delaying legal structuring often leads to fragmented claims, loss of evidentiary strength, and missed procedural opportunities. Early involvement of a Financial Claims Lawyer allows our clients to preserve their contractual rights, strengthen enforceability, and significantly improve recovery outcomes—whether the dispute proceeds before the Commercial Court or through arbitration.
Conclusion: When to Escalate Construction Payment Disputes
Disputed construction payment certificates and additional works claims require timely, structured legal action. Delays, weak documentation, or failure to comply with contractual procedures can permanently undermine a contractor’s financial position.
If your company is facing disputes over payment certificates, additional works, completion percentages, or delayed approvals, visit our Financial Claims Service page to understand how construction-related financial claims are assessed, pursued, and enforced. Once you contact us, our legal team can review your case and begin the financial claim procedures within 24 hours, following the most effective and enforceable legal route.
👉 Click the following link to go to the service page: Financial Claims Service
Summary
This article explains how disputed construction payment certificates and additional works claims arise in Saudi construction projects, including disputes over completion percentages, delayed approvals, variation orders, price differences, time extensions, and contractual notice requirements. It highlights the financial impact of these disputes on contractors’ cash flow and outlines the structured legal approaches used to pursue construction-related financial claims before the Saudi Commercial Courts or through arbitration. The article also explains when contractors should escalate payment disputes to a Financial Claims Lawyer to protect their contractual rights and recover unpaid construction entitlements efficiently.
