Contractors Guide to Simple Legal Process - Part 2 – Pre-Advocate Stage in Construction Contracts and its Importance

Theme: Legal Framework, Module: Law & Contracts

Author: Dr. Pradeep Reddy Sarvareddy

Published Date: 30 Jan 2026

This series explores the legal process in 5 parts (Read Part 1 by clicking here).  Let us now read the Part 2: Pre-Advocate Stage and its Importance.

You may be telling the truth, but you need evidence to win cases.  What you think logically may not be evidence legally.  In Part 1, we structured the legal process as “three pillars” by comparing the law to engineering, for simplification.  This Part 2 explores the first pillar, i.e., the Pre-Advocate Stage, which is equivalent to the Design or foundation of your legal case.  This is where routine actions like documentation and approvals occur, and you are in good terms with the Department.  While these seem like standard site tasks in Construction projects, legally, these actions of yours are the foundation of your future case.  Understanding this stage is critical because it establishes the evidence in construction projects, where everyone is smiling and probably happy to cooperate with you.  This is your precautionary phase, where you are designing a strong foundation for your future legal battle in Court or Arbitration. 

This stage includes both Procedural Law and Substantive Law.  But in a simplified sense, consider that these aspects are very preliminary, like a foundation.  If you can prove that the foundation is not suitable, then the entire sub-structure and the super-structure will collapse.  Similarly, in law, if you can prove a preliminary aspect (at whichever stage that is appropriate), you can win the case instantly. 

A real-life example.  A person entered into a Loan Contract for a few Crores but ended up losing the money.  A case was filed against this person to pay back the full amount.  The District Court held this person in breach of contract and directed to pay back the full amount.  The High Court also said the same.  But in the Supreme Court, it was noted that this person was a “minor” at the time he entered into the Contract.  A Contract with a minor is invalid in law.  The Supreme Court dismissed the case.  The person, who was by this time about 30 years old, walked away without paying even one Rupee. 

The Preliminary Legal Aspects that a Contractor should check may include the following:

  * Proper Authorisation to Sign

  * Proper Address to issue Notices

  * Procedure for dispute escalation

  * Time Periods for Notices

  * Limitation Period for filing Case

Also understand that certain actions are not considered “valid” as per law.  Note the following:

  * Sending the Notice vs Receipt of Notice by the Department

  * “We will be ready to start work” is different from “We are ready to start work”

  * “Some document” is not “Evidence”

  * What you wrote in your letterhead is not Evidence

  * Handing over the site to some unauthorised Department Officer is not valid

  * General conversations via WhatsApp may not be Evidence

As already noted, most Contractors can understand these aspects with some experience and through intuition.  That is why we see most Contractors do the following things:

  * Receive most payments before the Final Bill, and leave a very insignificant amount for the Final Bill.  This way, even if the Department takes six months to clear the Final Bill, the Contractor is ok.

  * Gets approval from the Department at the earliest even if the Contractor is not yet ready with the Machines and Manpower.  This way, if there is some change from the Department or issues that are external like land acquisition, the Contractor blames the Department, even though the Contractor knows that he is also at fault.

  * Sometimes avoids taking over the project until the Contractor is ready to mobilise Machinery and Manpower.  This way, the Contractor can say that there was no delay on the part of the Contractor as the site was not handed over.

  * Obtains a signature and stamp on letters in a timely manner, slowly building up evidence. 

  * Taking photos and videos regularly, again slowly building up evidence.

Some of these “tactics” by the Contractor may be lawful, some may be unlawful and others may be in the grey area.  This is why the Department also has to be alert and even smarter.  Some young Contractors or for that matter even the Department Officials that are new, wonder what the need for photos daily are for or what use is a one-line letter, but this is what the “experience” is all about.

Observe that in this Part of the Blog, the role of the Advocate is almost missing.  This is because most Contractors are experienced.  But this is where sometimes even the experienced Contractors make mistakes, which will not be clear at that time but only after a dispute arises.  Sometimes, the Advocates make “minor” changes to letter or documents of the Contractor before the Contractor submits to the Department.  The Contractor does not see any “benefit” due to the “minor” changes, but only time will prove. 

Are the following two sentences the same:

• Version 1 (with 2 commas): This agreement continues for five years, and thereafter renews every five years, unless and until terminated with one year’s prior written notice.
• Version 2 (without commas): This agreement continues for five years and thereafter renews every five years unless and until terminated with one year’s prior written notice.

This sentence is from an actual case in Canada that cost the Department millions of Dollars.  All the Advocates did or did not do was focus on “two commas”.

In conclusion, do not under utilise this phase of “Preliminary Legal Aspects”.  At this stage, everyone is smiling, and most likely will not be looking for commas. 

For, now, try, to, interpret, Commas,,,

Continued in Part 3 of 5

(Read Part 1 by clicking here)

Continued in Part 3 of 5.