Suspensions & Terminations of Construction Contracts in UAE

Construction industry invests considerable time and effort in planning projects & significantly less time is devoted to understanding what happens when a project is suspended or terminated. Suspensions and Terminations of contracts are one the most dangerous issues faced by the parties to the contract due to its consequences. In UAE, most of the clients use FIDIC Red Book with modifications for entering into a works contract. While the parties may include termination clauses in the contract, the UAE civil code also contains provisions that deal with suspension & termination clauses for work contracts called “Muqawala” contracts. Various clauses & their interpretation have been a point of debate as there is no clarity on what needs to be followed during the disputes. This book aims to evaluate the risks associated with the suspension & termination clauses among various parties, give a deeper insight on the Sharia law principles for work contracts falling under Muqawala & compare them with FIDIC clauses. In depth literature is available on UAE Civil Code relevant to construction laws. A survey is conducted to capture the needs of the industry & a number of recommendations are made.