Major Evidentiary Lapses – Why Government Departments Lose Cases in Construction Projects

Theme: Project Closure; Module: Evidence & Documentation

Author: Dr. Pradeep Reddy Sarvareddy

Published Date: 06 Jan 2026

Government Departments have lost several high-value cases recently, mostly in Arbitration.  These loses have triggered the Government to question the forums of Dispute Resolution, which has now resulted in the Government restricting Arbitration to Claims under Rs. 10 Crores in many Government Contracts.  The aspect that has been missed out is the root cause, i.e., the question, why Government loses arbitration cases.  The primary issue is lack of proper evidence which arises from poor documentation in Government Construction Projects.  Contractors need to understand these aspects as real life examples that demonstrate that even big organisations like Governments can lose due to lack of evidence, which are failures during the lifecycle of a project, and ultimately decide the outcome of a dispute.  This Article explores four major evidentiary lapses that consistently cause the Government to lose cases in the Construction sector.

Poor Measurement Books

The Measurement Book is not just paperwork, but it is the backbone of government defence in relation to construction projects.  Courts treat the Measurement Book as primary evidence of work done, quantities measured and deductions applied.  If entries are missing or unsigned in the Measurement Book, the government loses credibility in terms of evidence in a Court proceeding. 

  • Measurement Book proves actual work executed, quantities and compliance with specifications.
  • Measurement Book records rejections, deductions and reasons for non-payment.
  • Courts rely on the Measurement Book more than verbal testimony or general correspondence.

Common Measurement Book Mistakes

  • Delayed entries after work completion.
  • No signatures from contractor or engineer.
  • Missing remarks on defective or rejected work.
  • Failure to record extra items or variations properly.

An empty Measurement Book is an open door for claims.

Poor Letters by Government

Government often loses cases in Courts or Arbitration, not because of contractor’s strength, but because of the Government Department’s own letters.  Casual language in the government notices or letters, vague directions by the government and unnecessary admissions by the government in various documents become weapons against the department in court.

  • Casual language like “Please expedite” instead of “Time is of the essence” does not help and has no meaning.
  • Letters admitting delays without reserving rights means that the Government is giving away a lot to the Contractor.
  • Notices missing breach details, cure periods or contractual references becomes only an emotional information rather than a legal basis.
  • Government officers sometimes write letters in haste, without legal review, and this helps the Contractor.  Take time if you need to write something good.
  • Notices are treated as routine communication, not legal instruments, by the Government.  This arises usually due to lack of deep understanding of the law.

Result:

  • Courts treat vague letters of the department as acknowledgment of delay or waiver of rights, and give the benefit to the Contractors.
  • Poorly drafted notices weaken termination or liquidated damages claims of the government, and the government may lose its case due to its own mistakes.
  • Even a single sentence like “We understand your difficulties” can be fatal to the government department.  Writing the truth is good, but writing “half-truth” will negatively affect the government’s own case.
  • Contractors use these letters as admissions to strengthen their case, and the government department unintentionally helped the Contractor win cases.

One careless sentence can cost crores.

Lack of Evidence by Government Department

Government departments often believe they have a strong case.  The contract is clear and the breach by the Contractor is obvious.  Yet, the Government loses in Court or Arbitration.  Why?  Because cases are not won on assumptions, rather cases are won on evidence.

The Silent Killer

  • Courts and tribunals decide on evidence but not assumptions or mere statements.
  • If site records, letters or logs are missing, even the best lawyer cannot save the case.

Examples:

  • Oral evidence does not work.
  • Measurement books are incomplete.
  • Notices not served to Contractor properly.
  • No link between claims and approvals.

Cases are won on paper, not on memory.

Oral Instructions

On-site Oral instructions by Government Department to Contractor are common.  Oral instructions are quick and practical.  Yet, in court, words fail.  When Oral instructions are not documented, government departments lose control of the case.  The legal world is different from the construction site world. 

  • Courts and tribunals rely on documentary evidence but not memory.
  • Oral instructions create ambiguity.
  • What if the concerned Officers retired or transferred?  Even the memory is lost.
  • Who documents the WhatsApp messages sent by the Government officer to a Contractor?  Instead write proper letters or notices.

Words vanish. Records stay.