About the Author xi
Preface xiii
1 Overview 1
1.1 Basis of government 2
1.2 Division of powers in the UAE 2
1.3 Islamic Sharíah 4
1.4 Civil law 6
1.5 Domestic courts 8
1.6 Financial free zones 10
2 Construction Law 13
2.1 Muqawala 14
2.2 Commercial and civil contracts 15
2.3 Delict (tort) 18
2.4 Public procurement 20
2.5 Administrative contracts 23
3 Contract Formation 25
3.1 Components of a valid contract 25
3.2 Offer and acceptance 26
3.3 Certainty 28
3.4 Mutual intentions 32
3.5 Capacity 33
4 Interpretation 35
4.1 Statutory maxims 35
4.2 Intentions 36
4.3 Resolution of ambiguity 39
4.4 Absence of express terms 39
5 Contractual Principles 41
5.1 Binding obligations 41
5.2 Mandatory obligations 43
5.3 Third parties 46
5.4 Subcontractors 48
5.5 Good faith 49
5.6 Related obligations 50
5.7 Abuse of rights 52
5.8 Unfair contract terms 53
5.9 Unforeseen circumstances 54
6 Health, Safety and Welfare 59
6.1 Construction safety 59
6.2 Design and management responsibilities 65
6.3 Welfare 66
6.4 International Labour Organisation 68
6.5 Inspection and reporting 69
6.6 Sanctions and penalties 71
7 Design and Supervision 81
7.1 Duty of care 82
7.2 Obligation of result 84
7.3 Standard of care 87
7.4 Defences 88
7.5 Statutory duties 89
7.6 Compensation 91
7.7 Joint liability 91
8 Defects 95
8.1 Materials 95
8.2 Workmanship 97
8.3 Statutory duties 98
8.4 Remedies 100
9 Decennial Liability 103
9.1 Statutory sources 104
9.2 Strict liability 106
9.3 Contractual status 107
9.4 Compensation 109
9.5 Mitigating decennial liability 110
9.6 Public projects 112
10 Physical Damage and Personal Injury 115
10.1 Delict 115
10.2 Criminal damage 116
10.3 Presumed liability for property damage 117
10.4 Inherent danger (nuisance) 118
10.5 Service lines and public utilities 120
11 Time for Completion 123
11.1 Agreement 123
11.2 Extension of time 125
11.3 Assessment of entitlement 125
11.4 Time at large 129
11.5 Concurrent delay 130
11.6 Prolongation costs 135
12 Delay Damages and Other Remedies 137
12.1 Termination for delay 137
12.2 Reducing delay damages 138
12.3 Increasing delay damages 142
12.4 Administrative contracts 143
13 Price 147
13.1 Formation of a contract 147
13.2 Fair remuneration: Contractor 148
13.3 Fair remuneration: Consultant 150
13.4 Supply contracts 151
13.5 Lump sum and remeasure contracts 151
13.6 Variations 152
13.7 Subcontracts 153
13.8 Public procurement in the UAE 154
14 Payment 157
14.1 Payment on delivery 157
14.2 Payment certificates 159
14.3 Subcontracts 159
14.4 Conditional payment clauses 160
14.5 Bank guarantee 163
14.6 Cheque 165
15 Interest 167
15.1 Riba and usury 167
15.2 Statutory right 169
15.3 Fixed or crystallised debt 170
15.4 Interest in the UAE 172
15.5 Interest under the FIDIC Conditions 172
15.6 Financing charges 173
16 Suspension 175
16.1 FIDIC Conditions 175
16.2 Statutory right of suspension 176
16.3 Excluding the right of suspension 177
16.4 Formalities 178
17 Termination 179
17.1 Termination of an innominate contract 179
17.2 Termination of a muqawala: Employer 183
17.3 Termination of a muqawala: Contractor 184
17.4 Consequences of termination 187
17.5 Impossibility and force majeure 188
18 Self -help Remedies 191
18.1 Retention of ownership 191
18.2 Possessory lien 193
18.3 Priority right 196
18.4 Direct payment 197
18.5 Set off 198
19 Damages 201
19.1 Performance by compulsion 201
19.2 Entitlement to damages 203
19.3 Assessment of damages 204
19.4 Global claims 206
19.5 Loss of profit 207
19.6 Consequential and indirect loss 209
19.7 Mitigation 211
19.8 Limitation of liability 212
20 Evidence 215
20.1 Burden of proof 215
20.2 Documents 216
20.3 Disclosure and production 216
20.4 Witness testimony 218
20.5 Court appointed experts 219
20.6 Conclusive findings of fact 221
21 Prescription 223
21.1 Islamic Shari’ah 223
21.2 Commercial obligations 224
21.3 Civil obligations 225
21.4 Restriction on amendment 226
22 Litigation 229
22.1 Court structure 229
22.2 International jurisdiction 233
22.3 Jurisdiction between emirates 234
22.4 Commencement of proceedings 235
22.5 Proceedings against the government 237
22.6 Summary actions 238
22.7 Mediation and adjudication 242
23 Enforcement 245
23.1 Procedure 245
23.2 Appeal 247
23.3 Enforcement outside the jurisdiction 248
24 Arbitration 253
24.1 Right to arbitrate 253
24.2 Treaty arbitration 256
24.3 Validity of an arbitration agreement 257
24.4 Capacity to agree 260
24.5 Jurisdiction and powers 264
24.6 Procedures and formalities 267
24.7 Challenging an arbitrator 272
24.8 Enforcement of domestic awards 273
24.9 Enforcement of foreign awards 278
24.10 New York Convention 280
25 Key Features and Differences 285
25.1 Key features of Islamic civil law 285
25.2 FIDIC Conditions 288
25.3 Gulf states contrasted 289
Commentary: FIDIC Conditions 293
Glossary 387
Index 391
