Construction Contracts in El Salvador

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In 2021 and so far this year, there has been an increase in investments on construction projects in El Salvador. From a legal standpoint, this constitutes a challenge to the construction industry due to the high level of disputes and conflicts that usually arise between contractors and owners.

These conflicts generally occur when the contracts are being implemented and can be caused for various reasons such as unforeseen conditions in the ground, design flaws, discrepancies between various technical standards, delays from one or both parties, cost overruns, faulty supervision, construction defects, among others. Also, conflicts may arise from the different interpretations that the parties have of the contract or its annexes.

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