About the Author xi
Preface xiii
1 Law in the Gulf 1
1.1 Basis of Government 1
1.2 Federal Jurisdiction in the UAE 2
1.3 Role of Islamic Shari’ah 3
1.4 Civil Law 6
1.5 Jurisprudence Constante 8
1.6 Financial Free Zones 10
2 Construction Contracts 13
2.1 Commercial and Civil Contracts Distinguished 13
2.2 Muqawala 18
2.3 Delict (Tort) 19
2.4 Public Procurement 21
2.4.1 Saudi Arabia 22
2.4.2 United Arab Emirates 23
2.4.3 Abu Dhabi 23
2.4.4 Dubai 24
2.5 Administrative Contracts 25
3 Contract Formation 27
3.1 Components of a Valid Contract 27
3.2 Offer and Acceptance 28
3.3 Certainty 30
3.4 Consent 33
3.5 Capacity and Authority 34
4 Effects of a Contract 35
4.1 Binding and Effective 35
4.2 Statutory Limits 36
4.3 Third Parties 39
4.4 Subcontractors 41
5 Interpretation 43
5.1 Words and Intentions 43
5.2 Presumption Against Liability 47
5.3 Absence of Express Terms 48
6 Good Faith and Related Principles 51
6.1 Good Faith 51
6.2 Related Obligations 53
6.3 Abuse of Rights 55
6.4 Unfair Contract Terms 56
6.5 Unforeseen Circumstances 58
6.6 Extraneous Cause and Force Majeure 60
7 Health, Safety and Welfare 63
7.1 Construction Safety in the Gulf 63
7.1.1 United Arab Emirates 65
7.1.2 Bahrain, Kuwait, Oman, Qatar and Saudi Arabia 68
7.2 Design, Planning and Supervision 69
7.3 Welfare 71
7.4 International Labour Organization 74
7.5 Inspection and Reporting 75
7.6 Sanctions and Penalties 78
7.6.1 Criminal Penalties 78
7.6.2 Diya or Blood Money 79
7.6.3 Statutory Compensation 81
7.6.4 Civil Damages 82
7.6.5 Administrative Sanctions 84
8 Design and Supervision 85
8.1 Duty of Care 85
8.2 Obligation of Result 88
8.3 Standard of Care 90
8.4 Defences 91
8.5 Statutory Duties 91
8.6 Compensation 93
8.7 Joint Liability 93
9 Defects 97
9.1 Materials 97
9.2 Workmanship 98
9.3 Statutory Duties 100
9.4 Remedies 102
10 Decennial Liability 105
10.1 Statutory Sources 106
10.2 Strict Liability 108
10.3 Contractual Status and Defences 109
10.4 Compensation 111
10.5 Mitigating Decennial Liability Risk 112
10.6 Public Projects 114
11 Physical Damage and Personal Injury 117
11.1 Delict 117
11.2 Criminal Damage 118
11.3 Presumed Liability for Property Damage 119
11.4 Inherent Danger (Nuisance) 120
11.5 Service Lines and Public Utilities 121
12 Time for Completion 123
12.1 Absence of Agreement 123
12.2 Extension of Time 124
12.3 Subcontractor Delay and Extraneous Cause 126
12.4 Delay Rendering Time at Large 128
12.5 Concurrent Delay 129
13 Delay Damages 135
13.1 Delay Damages and Penalties 135
13.2 Reducing Delay Damages 136
13.3 Increasing Delay Damages 141
13.4 Termination for Delay 141
13.5 Delay Damages Following Termination 142
13.6 Administrative Contracts 143
13.7 Prolongation Costs 145
14 Price 147
14.1 Formation of a Contract 147
14.2 Fair Remuneration: Contractor 148
14.3 Fair Remuneration: Consultant 150
14.4 Adjustment of the Contract Price 151
14.5 Subcontracts 153
14.6 Supply Contracts 153
14.7 Public Procurement 154
15 Payment 157
15.1 Payment on Delivery 157
15.2 Payment Certificates 158
15.3 Subcontracts 159
15.4 Conditional Payment Clauses 160
15.5 Bank Guarantee 166
15.6 Cheque 167
15.7 Payment Order 170
16 Interest 173
16.1 Riba and Usury 173
16.2 Contractual Interest 175
16.3 Late Payment Interest 176
16.4 Judgment Debt Interest 180
16.5 Interest Under the FIDIC Conditions 181
16.6 Financing Charges 182
17 Suspension and Termination 185
17.1 Statutory Right of Suspension 185
17.2 Excluding the Right of Suspension 187
17.3 Notice of Suspension 188
17.4 Termination of an Innominate Contract 188
17.5 Notice of Termination and Need for a Court Order 191
17.6 Termination of a Muqawala: Employer 192
17.7 Termination of a Muqawala: Contractor 193
17.8 Consequences of Termination 197
17.9 Impossibility and Force Majeure 199
18 Pre-emptive Remedies 201
18.1 Retention of Ownership 201
18.2 Possessory Lien 203
18.3 Priority Right 205
18.4 Direct Payment 206
18.5 Set Off 207
19 Damages 211
19.1 Performance by Compulsion 211
19.2 Entitlement to Damages 213
19.3 Measure of Loss 213
19.3.1 Bahrain, Kuwait and Qatar 214
19.3.2 Saudi Arabia 214
19.3.3 United Arab Emirates and Oman 215
19.4 Assessment of Damages 216
19.5 Causation and Global Claims 217
19.6 Loss of Profit 220
19.7 Consequential and Indirect Loss 221
19.8 Mitigation 224
19.9 Limitation of Liability 224
20 Evidence 227
20.1 Burden and Standard of Proof 227
20.2 Evidentiary Presumptions 228
20.3 Documents and Electronic Records 229
20.4 Disclosure and Production 230
20.5 Witness Testimony 232
20.6 Court-Appointed Experts 233
21 Prescription 237
21.1 Islamic Shari’ah 237
21.2 Commercial Obligations 238
21.3 Civil and Professional Obligations 239
21.4 Varying a Prescription Period 240
22 Civil Proceedings 245
22.1 Court Structure 245
22.1.1 United Arab Emirates 246
22.1.2 Bahrain 248
22.1.3 Kuwait Oman and Qatar 249
22.1.4 Saudi Arabia 250
22.2 International Jurisdiction 251
22.3 Jurisdiction Between Emirates 252
22.4 Commencement of Proceedings 253
22.5 Proceedings Against the Government 255
22.6 Court of Summary Matters 256
22.6.1 Status and Effect of Summary Relief 257
22.6.2 Preservation of Evidence 258
22.6.3 Preservation of Assets 258
22.6.4 Bank Guarantees 260
22.7 Mediation and Adjudication 262
23 Enforcement 267
23.1 Enforcement Courts 267
23.2 Procedure and Methods of Enforcement 268
23.3 Appeal and Stay of Execution 269
23.4 Financial Free Zone Courts 270
23.5 Enforcement Outside the Jurisdiction 272
24 Arbitration 277
24.1 Arbitration in the Gulf 277
24.2 Treaty Arbitration 279
24.3 Form of an Arbitration Agreement and Survival 280
24.4 Authority to Agree 285
24.5 Public Order and Other Constraints 289
24.6 Jurisdiction, Pre-arbitration Conditions and Costs 292
24.7 Procedures and Formalities 296
24.7.1 Right of Confrontation 297
24.7.2 Power of Attorney 298
24.7.3 Witnesses, Oaths and Sequestration 298
24.7.4 Requirements for the Final Award 300
24.8 Time Limit for the Final Award 303
24.9 Enforcement of Domestic Awards 305
24.9.1 Onshore Recognition and Enforcement 305
24.9.2 International and Financial Centre Courts 307
24.9.3 Kuwait 308
24.10 Enforcement of Foreign Awards 309
24.10.1 International Treaty–Based Enforcement 309
24.10.2 International and Financial Centre Courts 311
24.10.3 Non-treaty Enforcement 312
25 Gulf Construction Law: Essence and Essentials 315
25.1 Development of Common Law and Civil Law 315
25.2 Key Themes of Gulf Construction Law 317
25.2.1 Contracts as Law (Pacta sunt servanda) 318
25.2.2 Classification of Contracts 318
25.2.3 Holistic Interpretation of Contracts 319
25.2.4 Mutuality of Obligations 320
25.2.5 Extraneous Cause 320
25.2.6 Obligation of Result 320
25.2.7 Acts Causing Harm 320
25.3 Limits on Rights 321
25.3.1 Good Faith and Abuse of Rights 321
25.3.2 Public Order 322
25.3.3 Culpability 323
25.4 Role of the Gulf’s Onshore Civil Courts 324
25.4.1 Precedent and Jurisprudence Constante 324
25.4.2 Appeals and Procedure 324
25.4.3 Experts 324
25.4.4 Evidence and Hearsay 325
25.5 Islamic Shari’ah 325
25.6 Gulf States Contrasted 326
Commentary: FIDIC Conditions 331
Glossary 443
Index 447
