Construction & Contracting Disputes

Construction contracts are governed by the contracting (muqawala) provisions of the Civil Transactions Law, which were restated in the new law in force from 1 June 2026, together with the terms of the contract itself.

Decennial liability. Contractors and supervising architects are jointly liable for ten years for collapse of a building or defects threatening its stability or safety. This liability cannot be excluded by agreement. The new law treats a main contractor's recourse against subcontractors as a contractual matter.

Price and changed circumstances. In a lump-sum contract, higher costs alone do not entitle the contractor to a higher price. In exceptional and unforeseeable circumstances, however, the court may restore balance by extending time, adjusting the price or ending the contract.

Notices and records. Delay, variation and payment disputes are usually decided on the contemporaneous record: notices, site instructions, progress reports and payment certificates. Contractual notice periods can affect entitlement.

Experts and arbitration. Construction disputes typically turn on technical evidence, and courts commonly appoint engineering experts. Many contracts provide for arbitration instead of court proceedings.

Preserve the contract, all variations, correspondence and site records, and check the notice and dispute provisions before taking a step such as suspending work or terminating.

Legal framework
Federal Decree-Law No. 25 of 2025 (Civil Transactions Law): contracting (muqawala) provisions
Federal Decree-Law No. 42 of 2022 (Civil Procedure Law), as amended, on expert evidence
Federal Law No. 6 of 2018 on Arbitration

Contracts concluded before 1 June 2026 may remain subject to the previous Civil Code. The article numbering of the new law should be confirmed against the official Arabic text.