Risk allocation in Gulf construction: FIDIC and local adaptations
FIDIC remains the starting point for many Gulf projects. It is rarely the finishing point. Employers, particularly government-related entities, amend the Red and Yellow Books until delay, unforeseeable ground conditions and termination look very different from Geneva.
Time, money and the Engineer
Particular conditions often shorten claim notice periods, constrain the Engineer’s independence, and cap prolongation. In the UAE, courts and DIFC/ADGM tribunals will still look at good faith and prevention, but contractors who miss contractual notices remain exposed. Saudi and Qatari public projects add tender law and local content overlays that FIDIC never contemplated.
Decennial liability and defects
Civil-code decennial liability in several GCC states cannot be contracted out in the way a common-law limitation clause might suggest. Design-and-build contractors who assume they have “passed risk” to a consultant frequently discover otherwise after handover.
Dispute boards and arbitration seats
DAAB provisions are frequently deleted. Arbitration is often seated in DIFC, ADGM, SCCA or QICCA, with onshore courts still relevant for interim measures and enforcement. Choose the seat with enforcement against the actual assets in mind, not as a drafting habit.
Our disputes and real-estate teams review particular conditions before they are signed and run claims once they are. This article is general information, not legal advice.