Evaluating Civil Law Jurisdiction in UAE Construction Contracts

This report examines the civil law jurisdiction governing the termination of construction contracts within the United Arab Emirates (UAE). It begins with an introduction to the construction industry's growth and the significance of civil law in resolving disputes. The literature review explores the UAE's civil law system, specifically the influence of the civil code and Islamic law on construction contracts (Muqawala). It details the consequences of contract termination, including liquidated damages and time factors, and the impact of civil law on the termination process. The research methodology outlines a descriptive research design utilizing an inductive approach and interpretivism philosophy for data collection and analysis. The report aims to evaluate the civil law jurisdiction for contract termination, assess the consequences of termination, and identify the influence of civil law on the process. The study highlights the importance of understanding legal aid available to parties involved in construction contracts, particularly for organizations undertaking construction work in the UAE. The report emphasizes the importance of addressing breaches, payment issues, and plant removal, all of which are critical factors in contract termination.

TERMINATION OF CONSTRUCTION
CONTRACT UNDER CIVIL LAW
JURISDICTION IN UAE

Table of Contents
CHAPTER1-INTRODUCTION......................................................................................................1
CHAPTER2-LITERTURE REVIEW..............................................................................................4
Overview.....................................................................................................................................4
Civil law jurisdiction in UAE for construction contracts............................................................4
Consequences of terminating construction contract UAE..........................................................5
Influence of civil law on the termination of construction contract.............................................5
CHAPTER3-RESERACH METHODOLOGY...............................................................................6
Research design...........................................................................................................................6
Research approach......................................................................................................................6
Research Philosophy...................................................................................................................6
Data collection............................................................................................................................6
Sampling.....................................................................................................................................7
Data analysis...............................................................................................................................7
REFERENCES................................................................................................................................8

CHAPTER1-INTRODUCTION
Background of study
Construction industry is the one of fastest growing domain across the globe. In past few
years mentioned industry grow at rapid rate and by multi fold. This reflects that huge investment
is made on the mentioned industry in past few years. Usually, in construction project there are
number of firms that are involved and they have different business interests. Sometimes interests
of these firms collide and case gone to court. At that time role of civil law jurisdiction play an
important role in solving business problems. It can be seen that mentioned law is playing very
active role in UAE in handling legal disputes that are related to the construction industry. There
are number of rules and regulations in UAE that are governing construction industry (Al-
Humaidi, 2013). In past few years many changes are observed in the mentioned nation
jurisdiction. Several civil codes has been introduced by the nation's government for the
construction industries so that they can be able to perform their work properly along with that
they can also be able to get proper justice for any kind of mishaps. There are number of things
that are associated with the construction contract.
Liquidated damages, penalties and limitation of liability are associated with construction
of projects. On termination of contract these are the some of areas where UAE jurisdiction work.
Apart from this, time factor related to the construction projects are also taken in to account while
terminating any contract. There are number of factors that are considered while terminating
construction contracts. In past time period many researches are carried out on the civil
jurisdiction law that is taken in to account for termination of contracts that are related to
construction industry. If in any case it is identified that contract is terminated intentionally by
any party to contract then in that case strict action is taken against relevant entity. In past few
years lots of changes are made in the law and by doing so it is ensured that all entities will follow
rules and regulations tightly (Baker and et. al, 2013). In case it is identified that people are not
discharging their responsibilities in proper manner then in that case strict action is taken against
them.
RESEARCH AIM: To evaluate civil law jurisdiction for termination of construction contract in
UAE.
RESEARCH OBJECTIVES
 To critically review civil law jurisdiction in for construction contracts.
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 To evaluate consequences of terminating construction contract in UAE.
 To identify the influence of civil law upon the termination of construction contract.
Research questions
 What are the factors that can be identified on review of civil law jurisdiction in for
construction contracts?
 What are consequences of terminating construction contract in UAE?
 What is the relationship between civil law jurisdiction and termination of construction
contract?
RATIONAL OF THE STUDY
What is the issue?
The major issues that the construction industry faces is the number of breaches of the
contract that takes place in a very frequent manner by the clients. There are many situations
where entire industry get affected by the situations where clients who orders for construction
then they breaches the contract (Brams, Bachman and Boggs, 2010). This creates a big problem
to the contract.
Why it is an issues?
It is one of the biggest issue as because many times actions are not taken against the
termination and breaches that takes place. Many times the contracts comes to an end because of
the removing of the plant from one site to another that creates an inconvenience of the
organisation. Many a times payment failure becomes the reason for this, fails in rectifying the
defects of projects working upon.
Why it is an issue now?
At present time it is an issues because of the payment issue and removal of the plant. This
situation creates a problem to any of the party who are getting into a contract (Brendel, Barrette
and El-Riachi, 2010). It is very essential for the both the parties to state all the information in a
very detailed manner in a contract so that properly work can be performed if any will disagree to
perform or any mishap takes place then contract can be terminated.
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What could the issue shed light upon?
This issues sheds light upon the aspects that are helpful in maintaining and contract and
to provide justice to the party who is facing problem by termination of the contract.
SIGNIFICANCE OF THE STUDY
The importance of the study is to understand the several legal aid that can be attained by
the party who is involved in the contract. It is very useful for the different organisations and
company which is very carrying out construction work in the nation (Bunni, 2013). Researchers
will also get information and knowledge about the legals aspect and actions upon the contract
termination processes.
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CHAPTER2-LITERTURE REVIEW
Overview
Literature reviews are the different views and ideas that has been shared by various
authors and writers about some specific topic. With the help of those study the present research
can be able to get assistance to get performed in a better and effective manner. It is very essential
to consider these secondary sources of information as because this will help investigators to
develop their knowledge and along with that relevant information can be able to adapt.
Civil law jurisdiction in UAE for construction contracts
According to Chern (2016), the legal system of the UAE is very strict where when
contract is made then it is having a very huge implication in the part of both the parties. UAE is a
civil law regulated country which is having various sets of codes of law that is the primary
sources of the legal system. As the it is an Islamic country, therefore it also follows the laws,
rules and regulations of Islam as well. As the construction contract lies under the UAE civil
code, Muqawala is the contract that is made to construct or to perform the tasks and work. This
is grouped into articles which are- Articles: 872- 874 scope of Muqawala is defined; In875-889
effects and its consequences has been clearly specified; 890-891 defines the methods of
subcontracting construction contracts; termination of Muqawala is stated in 892-896. The
construction industry in this nation adopts international practices so that the laws, rules and
regulations that are related to construction program can be able to implement in an effective and
appropriate manner.
As per Colon (2010), the UAE civil law jurisdiction mainly codified in the civil
transaction law which has been in number 5 of 1985. Understanding the authentic structure
applicable to improvement contracts in the UAE requires uncovering knowledge into what the
social events can and can't agree in their contracts. To this end, this article plots: How much an
outside law directs an improvement contract performed in the UAE. The choice of question
assurance parts being developed contracts. The probability of executing remote judgments and
arbitrate respects relating to advancement contracts. Key thoughts of UAE improvement laws
that can help supervisors, architects, brief specialists and subcontractors in setting out their
different rights and responsibilities, at the periods of exchange, use or question assurance.
Rational strides get-together should take before going into an advancement contract.
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Consequences of terminating construction contract UAE.
As per Marican (2014), termination is the step that is very critical and is taken when there
are very negative situation between the two parties who have indulged in the contract.
Termination is the action that is taken place when any act in the contract does not get performed
by any of the party. It is very essential for both the parties to understand the aspects of the drawn
in contract. Before completion an agreement, the closure party must ensure that it has the
legitimate perfect to do all things considered and completely takes after any definitively agreed
frameworks, (for instance, see necessities).
According to Thomas and Wright, (2016), it is typical for social occasions to wrongly
acknowledge that they have a benefit to end in a particular situation and to infer to end the
concurrence with no legitimate perfect to do accordingly. This can realize the end being unable
and the consummation party being exhibited to a damages declare. Toward the day's end, instead
of being the guiltless party, the social affair who ineffectively closes the contract unwittingly
transforms into the get-together in burst.
Influence of civil law on the termination of construction contract
As asserted by Husein (2013), the UAE Civil Code keeps an eye on the termination of
muqawala contracts and gives that "an understanding of muqawala should interminable supply of
the works agreed perpetual supply of the understanding by consent or by a demand of the court".
Moreover clearly setting out lawfully agreed end rights, it is crucial that the agreement gives that
it may be finished without a court orchestrate. If the contract does not have such an
announcement, the closure party is required to tell the other party of its objective to end the
understanding before proceeding to search for the court's consent to end the understanding.
As per Al-Humaidi (2013), This movement plainly costs time and money. Pending a
court's demand to end the agreements and if there are no important suspension rights, the get-
together may be required to continue playing out their legitimate responsibilities. This can incite
clear complexities. In any case, if the drafting gives that a no court orchestrate is required, the
understanding will end according to its terms with no further tradition. Then again, if an
understanding does not contain any legitimately agreed end rights, a social affair wishing to end
the contract is required to search for the consent of the court.
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CHAPTER3-RESERACH METHODOLOGY
Research design
In this strategy, there are different methods that can be utilized to lead successful research
as experimental, correlation, explanatory and descriptive. In the flow examine, Researcher will
utilize graphic outline to dissect methodologies . Through this technique, each sort of data can be
assembled which are required for directing this examination. It will take remedial activities for
settling the issue that are confronted by association in such manner. This strategy will be utilized
by examiner to accomplish their goal. This factor gets restorative data that is important to theme
and to unravel issue that emerge in explore.
Research approach
There are two sort of research approach which can be utilized by specialist to make
examination in such manner i.e. Inductive and deductive. The scientist will utilize inductive
approach for gathering pertinent information in such manner. It is useful to distinguish
distinctive kind of example through speculation and new hypotheses. This approach is useful to
finish characterized target and to gather best data with the goal that choices can be made.
Deductive approach can be utilized to inspect legitimacy of research clashes. It can be
recognized through speculation and hypotheses.
Research Philosophy
It depends on impression of scientist so they can gather best outcome for inquire about.
Positivism and interpretivism are the two logic that can be utilized by agent to direct
examination. In this, analyst will utilize interpretivism. It is useful to distinguish viewpoint of
various individuals. This technique can be utilized by expansive agents with the goal that they
can gather precise data in regards to the current circumstance. These reasoning can be utilized to
gather exact data in regards to the exploration with the goal that it can be directed in powerful
way.
Data collection
There are two technique that could utilized as a part of information gathering as essential
and optional information. Primary, data is gathered through poll. It is useful to recognize see
purpose of various individuals. Secondary information is gathered from different sources as
books, articles, magazines and others. In this examination, the scientist will utilize both the
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techniques with the goal that they can gather finish information in regards to the present
research. These are the imperative apparatus that can be utilized as a part of present investigation
and it is useful to gather pertinent information that can be utilized to recognize the issue with the
goal that they can make vital course of action to take care of such issue.
Sampling
In this technique, analyst will gather the data by directing examination. In this approach,
scientist will utilize bunch testing with the goal that they can gather precise data. In bunch way,
examiner isolates all the member into two gatherings and haphazardly select out of them. It is
best strategy to utilize on the grounds that it gives information that is absolutely pertinent and to
make the change in association with the goal that they can satisfy their clients request.
Data analysis
It is utilized by examiner with the goal that they can break down information in powerful
way. Research will utilize subjects and diagrams to gather data and information. Through this
technique, general information can be recognized in viable way. It is utilized to recognizable
proof of issues that are confronted by individuals with the goal that they can make important
essential change.
Gantt chart
ACTIVITY / WEEKS 1 2 3 4 5 6 7 8 9 10 11 12
Proposing the research topic
Setting up of aims and objectives
Carrying out literature review
Research methodology
Data collection
Analysis of data
Selecting appropriate option
Submission
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REFERENCES
Books and Journals
Al-Humaidi, H. M., 2013. Arbitration in Kuwait: Study of current practices and suggestions for
improvements. Journal of Legal Affairs and Dispute Resolution in Engineering and
Construction. 6(1). p.03013001.
Baker, E. and et. al., 2013. FIDIC contracts: Law and practice. CRC Press.
Brams, R., Bachman, M. and Boggs, P., 2010. Navigating construction disputes in the Middle
East. Constr. Contracts Law Rep. 34. p.23.
Brendel, N. R., Barrette, A. L. and El-Riachi, W., 2010. The availability in the UAE of liens to
secure payment under construction contracts. Arab Law Quarterly. 24(3). pp.309-317.
Bunni, N. G., 2013. The FIDIC forms of contract. John Wiley & Sons.
Chern, C., 2016. The Law of Construction Disputes. CRC Press.
Colon, J. C., 2010. Choice of law and Islamic finance. Tex. Int'l LJ. 46. p.411.
Husein, A. T., 2013. Construction and projects in Saudi Arabia: overview. Practical Law, Multi-
Jurisdictional Guide. 14.
Kerr, M., Ryburn, D., McLaren, B. and Dentons, Z., 2013. Construction and projects in United
Arab Emirates: overview. MULTI-JURISDICTIONAL GUIDE. 14. pp.1-12.
Marican, M.S.B.I., 2014. THE EFFECT OF ARTICLE 390 (2) OF THE UAE CIVIL CODE ON
LIQUIDATED DAMAGES CLAIMS IN THE UAE CONSTRUCTION
INDUSTRY (Doctoral dissertation, The British University in Dubai (BUiD)).Masadeh,
A., 2013. The court’s supportive role in Arbitration under the law of United Arab
Emirates. International Journal of Humanities and Management Sciences
(IJHMS). 1(1).
Thomas, R. W. and Wright, M., 2016. Construction contract claims. Palgrave Macmillan.
Online
Construction disputes in Oman, 2014. [Online]. Available through:<
http://omanlawblog.curtis.com/2014/01/on-12-november-2013-curtis-mallet.html>.
[Accessed on 11th August 2017].
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