This note is intended for international sponsors, contractors and advisers preparing for the mobilisation phase of a construction project in Bangladesh. It summarises common commercial, contractual and logistical issues encountered immediately after award and before physical works commence. It does not substitute for local legal, tax or regulatory advice.

Mobilisation priorities

The mobilisation window is typically short but critical: the principal tasks are (i) converting award into an executable contract (lump-sum, unit-rate or GMP), (ii) securing permits and statutory approvals needed to start works, and (iii) putting in place on-site logistics, temporary services and safety measures. From an international perspective, focus on ensuring enforceable payment mechanics, appropriate performance security, and clarity on variations and interface management.

Contractual and procurement considerations

Key commercial and contractual items to resolve before mobilisation include:

• Final form of the main contract and subcontracting strategy (scope, CPI/GMP mechanics, allowance handling).
• Mobilisation advance, cashflow milestones and mechanisms to secure repayment (retention, bonds, bank guarantees).
• Insurance requirements (CAR/EAR, third-party liability, employer’s liability) and evidence of cover.
• Performance security and liquidated damages calibrated to local enforceability.
• Dispute resolution: consider seat and governing law carefully; London or another neutral seat is common for international counterparties, but check enforceability and local recognition aspects with counsel.
• Anti-corruption, sanctions and export controls policies, and supplier/contractor due diligence.

Regulatory, tax and labour practicalities

Practical hurdles often determine the programme. Parties should coordinate with local advisers on:

• Permits and approvals required to commence site works and any specialist consents (environmental, heritage, road-works).
• Customs and import clearances for plant, equipment and temporary materials; temporary import regimes or bonded facilities can materially affect timing and cost.
• Workforce issues: visas, work permits for foreign personnel, local labour law compliance and union/worker engagement protocols.
• Tax and withholding obligations on payments to foreign contractors and VAT/GST treatment on imports and supplies.
• Banking and currency controls that may affect repatriation of funds and currency risk management.

Practical checklist for mobilisation

1. Confirm contract signature and identify any conditions precedent. Engage local counsel for CP clearance.
2. Obtain or confirm building permits and environmental consents; sequence submissions to avoid delay.
3. Secure performance security, insurance certificates and mobilisation advance terms.
4. Plan logistics: site access, temporary utilities, welfare facilities, traffic management and neighbour notifications.
5. Arrange customs clearance strategy for imported plant and materials; confirm duty/tax treatment.
6. Implement compliance checks: anti-bribery/modern slavery/AML screening of key subcontractors.
7. Coordinate financiers and insurers for evidence of cover and drawdown conditions.
8. Agree programme with critical early milestones and an agreed mechanism for updating critical path and reporting.

Jurisdiction and sources

When mobilising an international project it is important to involve advisors trained in local law and practice. Relevant official sources to consult include:

• Government of the People’s Republic of Bangladesh (official portals and ministries)
• Bangladesh Investment Development Authority (BIDA)
• National Board of Revenue (NBR)
• Bangladesh Bank (central bank for foreign exchange and remittance rules)
• National Building Code of Bangladesh and the Department/Ministry responsible for housing and public works

Our London office at Holborn Gate, 330 High Holborn, is experienced in coordinating cross-border mobilisation matters and in instructing local counsel and advisors in-country where needed. Early coordination between commercial, tax, compliance and technical teams materially reduces mobilisation risk.

General information only; not legal advice and not a substitute for advice on a particular matter.