Reformation Of Construction Law In India

A unified construction law could be based on a consolidation of the various statutes as also borrow from some of the best practices of other countries…

- Parveen P Mahtani

Construction Law in India is dealt with through various statutes including the Indian Contract Act, Transfer of Property Act, various labor laws etc. There is uncertainty in interpretation which leads to disputes and protracted litigation. The contracts between the construction companies and contractors are based on distorted versions of FIDIC and there is no standardized format of the contract. There is, therefore, probably the need for a unified construction law in India for balanced contract conditions, timely payments and speedy dispute resolution.

There have been amendments to certain laws to address certain issues such as the Specific Relief Act was amended in 2019 which prohibits a civil court from granting an injunction for such infrastructure projects where the injunction would result in a delay in progress or completion of the project. Various amendments have also been made to the Indian Arbitration Act. However, the existing laws do not address the issues currently faced by construction and infrastructure companies due to the complexity of transactions and technological advancement in construction.