Eugen Sarbu, PhD., Partner at Sarbu Partners, was a speaker at the 4Construct Cluj Conference – The Industry That Builds Romania, organised by eDevize, on October 16, 2025, in Cluj-Napoca.
During his intervention, Mr. Sarbu addressed a topic of interest for the construction sector in Romania, presenting how commercial arbitration can serve as a valuable tool for contractors facing challenges arising from the suspension of public construction contracts under GEO 41/2025.
Suspension of Construction Contracts and Its Impact on Contractors
In his presentation, Eugen Sarbu analysed the legal and economic implications of construction contract suspensions and highlighted the obligations of contractors during the suspension period, including the duty to safeguard works and equipment.
He also emphasised the consequences that may arise, particularly in the case of prolonged suspensions: additional costs, claims for compensation, and the risk regarding the enforcement of guarantees. He outlined the protective measures contractors can adopt when their contracts are suspended, stressing the importance of following the claims procedure as a key tool to safeguard contractors’ rights concerning extensions of time, additional costs, and loss of profit.
Construction Arbitration – An Effective Solution for Contractual Disputes
Eugen Sarbu highlighted the advantages of commercial arbitration as an efficient alternative method for resolving disputes arising in the context of construction contracts suspended under GEO 41/2025.
The main benefits of construction arbitration mentioned during the presentation were:
- Emergency Arbitrator, allowing for rapid adoption of provisional measures;
- Arbitrators specialised in construction law and FIDIC procedures;
- Confidentiality of the proceedings;
- Swift constitution of the arbitral tribunal and establishment of a clear procedural timetable;
- Appointment of party-appointed experts for technical evaluations;
- Bifurcation of proceedings for separate resolution of preliminary and substantive issues;
- Enforceability of the arbitral award and the limited grounds for annulment.
Conclusion
Our colleague’s presentation provided a balanced perspective between legal aspects and economic risks, offering participants practical insights for managing the challenges caused by the suspension of construction contracts in a professional and predictable framework.
In an economic context marked by instability and pressure on the construction sector, arbitration emerges as a pragmatic tool that protects investments and provides parties with an effective way to resolve obstacles encountered in the execution of construction projects.
Sarbu Partners’ Expertise in Construction Law
With over 20 years of combined experience in construction and public procurement law, we provide clients with comprehensive assistance and representation in local and international construction projects, delivering practical solutions tailored to the specific challenges of each situation.
Our services include:
- Management and substantiation of claims under standard construction contracts (GD 1/2018, FIDIC, NEC 3);
- Drafting, reviewing, and negotiating contractual documentation and project correspondence;
- Legal assistance and representation in arbitration proceedings and construction-related litigation, both nationally and internationally.
Contact
For assistance regarding the impact of GEO 41/2025 on construction projects, tailored to your needs, the Sarbu Partners team is at your disposal.
You can contact us at: office@sarbupartners.ro.
