Construction Law and Arbitration Guide in the Gulf

During the Covid-19 Pandemic, some construction projects experienced interruptions or slowing in the pace of progress. Others were suspended or terminated. Naturally, the question here becomes about the legal consequences.  Under UAE Civil Law, there are some articles that are helpful. I am quoting them below. Covid-19 may be classified as a force majeure case. It was not foreseeable at the time of making the contract and it affects all our life aspects. If, as a result, all or part of a project is terminated, articles 273 & 893 will apply. The contract will be set aside and the contractor will be entitled to the value of the work which he has completed and the expenses he has incurred in the performance thereof up to the amount of the benefit the employer has derived therefrom. Obviously, the contractor will be entitled to be only paid up to the value of the benefit conferred on the employer . The contractor will not be able to claim compensation for its losses as th...