law

Contract Administration

UAE law provides security in construction deal risks

By Jim Delkousis

The UAE has seen a major slowdown of construction projects in recent months, particularly in Dubai. The situation is far from being ideal for players in the construction market.

Trapped with stagnating projects, developers and contractors are facing a recurrent question. What can we do when a project is frozen? Do we take drastic measures such as cancellation of the project? Or shall we wait until conditions improve? …

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Construction Law, Contract Administration

The UAE’s new arbitration law: is there an easier way?

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by Anthony Edwards

 In May, Construction Week reported the UAE’s plan to finalise a new arbitration law, and highlighted various criticisms of the current draft. One contributor was quoted saying that “The point (in arbitration)…is beaten if things get complicated”. Review of the current draft suggests that the criticism reported in May could hardly have abated. …

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Construction Law

PWA’s general conditions of contract and the applicable provision of law no. 22 of 2004 (Civil Code of Qatar)

By: ‎Rey I. Madroño
‎(Construction-Contracts Lawyer & Engineer)‎

IntroductionThe Civil Code of Qatar, Law No. 22 of 2004 took effect on 30 June ‎‎2004. This relatively new law is a variant of the Civil Code of Egypt with ‎modifications but majority of the provisions on Obligations and ‎Contracts under the Egyptian Civil Code are retained with minor ‎changes under Law No. 22.‎ …

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Construction Law

UAE laws do not favour contractor

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by Shikha Mishra

In light of the current economic downturn, contractors will have little legal recourse if payments for on-going projects get delayed, legal experts say.

The recent cancellation of the US $1.25 billion contract between Dubai-based Meydan and the Arabtec-WCT JV has led to concerns in the market over similar situations arising in the future and the legal recourse available to contractors. …

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Contract Administration

The UAE Civil Code and Claims under the Red Book FIDIC in the UAE

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The UAE Civil Code and Claims under the Red Book FIDIC in the UAE
For all its innovation and spectacular achievements, the
construction industry in the UAE has been slow to move on from
its close relationship with the FIDIC Red Book (4th Edition) (the
Red Book). This was, of course, superseded long ago and it is
scarcely used anywhere else in the world, outside of this region. …

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Contract Administration

Dubai Escrow Law

By Mark Cijo

Dubai, one of the seven emirates that constitute the United Arab Emirates, is one of the hottest real estate markets in the world right now. Lawmakers in Dubai have shown their willingness to help this trend continue with a recent change to Dubai escrow law. …

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Contract Administration

Can a Contractor Obtain Compensation for a Radical Increase in its Costs if a Construction Contract Contains No Price Escalation Clause?

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Christopher R. Seppälä, Elizabeth Lefebvre-Gross

Faced with a drastic increase in the cost of commodities—for example, of steel, or oil—that undermines the economic assumptions of a construction contract, lawyers trained in the common law may believe that, if the contract has no price-escalation clause, the only relief from the contract available is termination on the grounds of frustration, impossibility, or impracticability. In fact, outside the common law countries, it may be possible to obtain other relief, including an increase in the contract price, to take into account changed circumstances after a contract has been signed. Several examples are provided below. …

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Contract Administration

Caution: Contracts

by Dennis Brand

Ask a group of industry professionals to state what they believe to be the most important provision in a construction contract and you will probably get as many varied responses as there are people in the group.

Give the same group of people a copy of a standard form contract (e.g. FIDIC, ICE or JCT) to read with a form of Particular Conditions or similar attached, and invariably they will look first at the Particular Conditions and possibly no further. …

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Contract Administration

Take care when taking over

by Steven Hunt

I sense that, for many contractors, ‘taking over’ is seen as the moment when the proverbial foot can come off the gas – the time when the contractor is finally relieved of the burden of delivering the project.For a contractor the process of taking over is an important one as the care of the works will pass to the employer and the employer’s entitlement to recover liquidated damages will cease. It is not, however, the end of the story for the contractor as he will remain liable for defective workmanship and materials beyond handover. …

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