Is the Engineering and Construction Contract Legally Less Competitive than the Red Book in Civil Law Countries?
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 14, Issue 3
Abstract
In many construction projects, standard forms of contract are an essential part of the contractual documents. They are preferred by construction parties for the advantages they present including reducing drafting time and costs. The International Federation of Consulting Engineers (FIDIC) and the New Engineering Contract (NEC) forms prepared by the London Institution of Civil Engineers are among the most popular standard construction contracts. In comparison with the other FIDIC contracts, the Conditions of Contract for Construction (the Red Book) is most used, and within the NEC forms, the Engineering and Construction Contract (ECC) is the most frequently used form. Both the Red Book and the ECC have their roots in common law jurisdictions. However, the former contract is widespread in civil law countries, whereas the latter is not. Several possible reasons for this difference can be studied. This paper is devoted to investigating whether the provisions of the ECC are less compatible than the provisions of the Red Book with the relevant mandatory statutory provisions and judicial jurisprudence of the United Arab Emirates, the civil code of which shares many similarities with the respective codes of other civil law countries. The investigation is instituted on the doctrinal research method and the results, which are documented in this paper, show that the ECC does not contain more contradictions than the Red Book with the aforementioned mandatory statutory provisions and judicial jurisprudence. Accordingly, it would appear that such contradictions do not explain why the ECC is not prevalent in civil law countries.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
All data, models, and code generated or used during the study appear in the published article.
References
List of Cases
Abu Dhabi Court of Cassation, Case No. 204/2015 Commercial, dated May 14, 2015.
Abu Dhabi Court of Cassation, Case No. 346/2016 Commercial, dated May 18, 2016.
Abu Dhabi Court of Cassation, Case No. 71/2013 Commercial, dated June 12, 2013.
Abu Dhabi Court of Cassation, Case No. 829/2016, dated January 11, 2017.
Dubai Court of Cassation, Case No. 117/2011 Civil, dated June12, 2011.
Dubai Court of Cassation, Case No. 1308/2020 Commercial, dated March 3, 2021.
Dubai Court of Cassation, Case No. 141/2019 Commercial, dated July 14, 2019.
Dubai Court of Cassation, Case No. 167/1998, dated June 6, 1998.
Dubai Court of Cassation, Case No. 18/2018 Real Estate, dated May 23, 2018.
Dubai Court of Cassation, Case No. 218/2005 Commercial, dated February 20, 2006.
Dubai Court of Cassation, Case No. 220/2016 Commercial, dated March 12, 2017.
Dubai Court of Cassation, Case No. 257/2017 Commercial, dated November 19, 2017.
Dubai Court of Cassation, Case No. 37/2010 Commercial, dated June 7, 2010.
Dubai Court of Cassation, Case No. 375/2018 Commercial, dated July 29, 2018.
Dubai Court of Cassation, Case No. 509/2016 Real Estate, dated April 12, 2017.
Dubai Court of Cassation, Case No. 517/2016 Civil, dated November 3, 2016.
Dubai Court of Cassation, Case No. 569/2017 Commercial, dated January 21, 2018.
Dubai Court of Cassation, Case No. 682/2016 Commercial, dated April 9, 2017.
Dubai Court of Cassation, Case No. 756/2016 Commercial, dated February 12, 2017.
Dubai Court of Cassation, Case No. 778/2017 Commercial, dated November 28, 2017.
Dubai Court of Cassation, Case No. 785/2017 Commercial, dated May 6, 2018.
Dubai Court of Cassation, Case No. 869/2016 Commercial, dated February 26, 2017.
Dubai Court of Cassation, Case No. 92/2018 Civil, dated April 12, 2018.
Union Supreme Court, Case No. 154/24, dated June 7, 2003.
Union Supreme Court, Case No. 213/23.
Union Supreme Court, Case No.108/22 Civil, dated January 23, 2002.
Union Supreme Court, Case No.711/24, dated October 23, 2005.
List of Statutes
Egyptian Civil Code No. 131 of 1948.
Qatar Civil Code No. 22 of 2004.
UAE Federal Law No. 5 of 1985 on Civil Transactions.
UAE Federal Law No. 6 of 2018 on Arbitration.
UAE Minister of Labour’s Decision No. 255 of 2010 Regarding Subcontracts.
Works Cited
Ahmed, M. 2019. “Everything you need to know about FIDIC contracts in the UAE.” Accessed September 15, 2021. https://fichtelegal.com/news/fidic-contract-uae/.
Alhyari, O. 2020. “Applicability of the 2017 FIDIC Red Book in civil law jurisdictions.” Arab Law Q. 36 (2): 1–20. https://doi.org/10.1163/15730255-BJA10065.
Al-Sanhuri, A. 1964. “Al-waseet in explaining the civil law.” [In Arabic.] Arab Heritage Revival House 7 (1): 242.
Baker, E., A. Lavers, and R. Major. 2019. “Introduction to the FIDIC suite of contracts.” In The guide to construction arbitration, edited by S. D. B. Brekoulakis and D. B. Thomas. London: Law Business Research.
Besaiso, H., P. Fenn, M. Emsley, and D. Wright. 2018. “A comparison of the suitability of FIDIC and NEC conditions of contract in Palestine, A perspective from the industry.” Eng. Constr. Archit. Manage. 25 (2): 241–256. https://doi.org/10.1108/ECAM-10-2016-0235.
BNC’s Construction Analytics. 2021. “UAE: Industry networks FZC.” Accessed September 15, 2021. https://www.bncnetwork.net/Access-UAE-Construction-Projects-News-Analytic-Reports-and-Forecasts.
Broome, J. C., and R. W. Hayes. 1997. “A comparison of the clarity of traditional construction contracts and of the new engineering contract.” Int. J. Project Manage. 15 (4): 255. https://doi.org/10.1016/S0263-7863(96)00078-6.
Bunni, N. 2005. The FIDIC forms of contract. Hoboken, NJ: Blackwell Publishing.
Caplicki, E. V., III. 2009. “Limitation of liability clause violates anti-indemnity statute.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 1 (3): 154. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000011.
Chan, D. W. M., and J. H. L. Chan. 2018. “Pilot case study of new engineering contracts (NECs) in Hong Kong—Joy or tears?” In Proc., 21st Int. Symp. on Advancement of Construction Management and Real Estate, edited byK. W. Chau, I. Y. S. Chan, W. Lu, and C. Webster. New York: Springer.
Construction Industry Development Board. 2005. “Best practice guideline #C2: Choosing an appropriate form of contract for engineering and construction works.” Accessed September 15, 2021. http://www.cidb.org.za/wp-content/uploads/2021/04/Choosing-an-Appropriate-Form-of-Contract-for-Engineering-and-Construction-Works.pdf.
Construction Industry Review Committee. 2001. “Construct for excellence—Report of the Construction Industry Review Committee.” Accessed September 15, 2021. https://www.devb.gov.hk/filemanager/en/content_735/reporte.pdf.
Crawley, S. E. 2017. “The difference in how UAE and EW law controls Gharar (risk) and so Riba in a construction contract in the Emirate of Dubai, UAE.” Accessed September 15, 2021. http://hdl.handle.net/10059/2453.
El-adaway, I., S. Fawzy, T. Allard, and A. Runnels. 2016. “Change order provisions under national and international standard forms of contract.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 8 (3): 03716001. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000187.
Ezeldin, A. S., and A. Abu Helw. 2018. “Proposed force majeure clause for construction contracts under civil and common laws.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 10 (3): 04518005. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000255.
Fawzy, S. A., I. H. El-adaway, and T. H. Hamed. 2015. “Contracting in a global world: Application of the ‘time at large’ principle.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 7 (3): 04515001. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000170.
Fawzy, S. A., I. H. El-adaway, L. Perreau-Saussine, M. S. Abdel Wahab, and T. H. Hamed. 2018a. “Analyzing termination for convenience provisions under common law FIDIC using a civil law perspective.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 10 (4): 06518003. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000279.
Fawzy, S. A., I. H. El-adaway, L. Perreau-Saussine, M. S. Abdel Wahab, and T. H. Hamed. 2018b. “Claims for extension of time and additional payment under common law FIDIC: Civil law analysis.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 10 (4): 06518002. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000276.
Fawzy, S. S., I. H. El-adaway, L. Perreau-Saussine, M. S. Abdel Wahab, and T. H. Hamed. 2019. “Civil law context for understanding employer’s payment obligations under common law FIDIC.” J. Leg. Aff. Dispute Resolut. Eng. Constitution 11 (1): 06518006. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000285.
Fawzy, S., T. Hamed, M. Abdelwahab, and I. El-Adaway. 2018c. Practicing FIDIC in civil law jurisdictions, application of time and additional payment provisions. Chisinau, Moldova: LAP LAMBERT Academic Publishing.
Glover, J. 2017. “NEC4 and FIDIC compared.” Accessed September 15, 2021. https://www.fenwickelliott.com/research-insight/annual-review/2017/nec4-fidic-compared#footnoteref2_qjzhqt0.
Grose, M. 2016. Construction law in the United Arab Emirates and the Gulf. New York: Wiley.
Grose, M. 2017. “Compatibility of FIDIC’s drafting principles with contracting practices in the Gulf: A perfect match or a marriage of convenience?” Int. Constr. Law Rev. 34 (4): 385.
Grose, M., B. Cowling, A. Hall, and M. Heywood. 2017. “United Arab Emirates: FIDIC Red Book 2017—A MENA perspective.” Accessed September 15, 2021. http://www.mondaq.com/x/657310/employee+rights+labour+relations/FIDIC+Red+Book+2017+A+MENA+Perspective.
Hansen, S. 2020. “Does the COVID-19 outbreak constitute a force majeure event? A pandemic impact on construction contracts.” J. Civ. Eng. Forum. 6 (1): 201–206. https://doi.org/10.22146/jcef.54997.
Ingmire, C. 2012. “United Arab Emirates.” In Construction law and practice—Jurisdictional comparisons, edited by C. Lovatt and E. Smith. London: Sweet and Maxwell.
Kanakri, C., and A. Massey. 2017. “Legal issues relating to construction contracts in the United Arab Emirates.” Accessed September 15, 2021. https://uk.practicallaw.thomsonreuters.com/0-619-1946?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1.
Kandil, O. A. H., N. A. B. Yehia, and T. H. Hamed. 2019. “Consequences of quantities increase under some civil codes and FIDIC Red Book.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 12 (1): 04519038. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000344.
Klee, L. 2018. Vol. 490 of International construction contract law. New York: Wiley.
Li, Y. C., W. H. Luk, and E. Cheng. 2016. “Hong Kong’s first public sector NEC contract: Lessons learnt.” Proc. Inst. Civ. Eng. Manage. Procur. Law 169 (6): 231. https://doi.org/10.1680/jmapl.15.00051.
Loosemore, M. 1994. “Dealing with unexpected problems—Do contracts help? A comparison of the NEC and JCT 80 forms.” Eng. Constr. Archit. Manage. 1 (2): 115. https://doi.org/10.1108/eb020996.
Mackenzie, A., G. Prestige, S. Kotb, K. Mechantaf, and N. Roberts. 2019. “Construction and projects in United Arab Emirates: Overview.” Accessed September 15, 2021. https://globalarbitrationnews.com/construction-and-projects-in-united-arab-emirates-overview/.
Mante, J. 2018. “Dispute resolution under the FIDIC and NEC conditions: Paradox of philosophies and procedures?” Int. Constr. Law Rev. 35 (2): 182.
Mewomo, M. C., C. Aigbavboa, and P. Lesalane. 2018. “An examination of the key drivers of amendments to the standard forms of contract in the South African construction industry.” J. Constr. Dev. Countr. 23 (1): 115. https://doi.org/10.21315/jcdc2018.23.1.7.
NEC (New Engineering Contract). n.d. “NEC4 dictionary.” Accessed September 15, 2021. https://www.neccontract.com/About-NEC/NEC-Dictionary.
Patterson, R. 2018. “NEC contracts—Are they right for you?” Accessed September 15, 2021. https://journal.iaccm.com/contracting-excellence-journal/nec-contracts-are-they-right-for-you.
Pinsent Masons. 2016. “Adapting FIDIC provisions for use in Qatar.” Accessed September 15, 2021. https://www.pinsentmasons.com/out-law/guides/adapting-fidic-provisions-for-use-in-qatar.
Pislevik, S. 2019. “Constructive acceleration in the UAE: A matter of contract, law or good faith.” Int. Constr. Law Rev. 36 (1): 50–63.
Rankin, E. M., and S. L. Hill. 2019. “The United Arab Emirates.” In The international application of FIDIC contracts: A practical guide, edited by D. Charrett. Oxfordshire, UK: Routledge.
Rasslan, N. D., and A. H. Nassar. 2017. “Comparing suitability of NEC and FIDIC contracts in managing construction project in Egypt.” Int. J. Eng. Res. Technol. 6 (6): 535.
Rowlinson, M. 2019. A practical guide to the NEC4 engineering and construction contract. New York: Wiley.
Saleh, N. 1993. “Civil codes of Arab Countries: The Sanhuri codes.” Arab Law Q. 8 (2): 161–167. https://doi.org/10.1163/157302593X00050.
Shafik, N., S. Qodsi, E. Serag, and M. Helmi. 2016. “Application of FIDIC contracts under the Egyptian civil code.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 8 (3): 04516004. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000193.
Singh, K. 2015. “FIDIC contracts in a civil law setting: Guarding against inoperability.” Accessed September 15, 2021. https://www.lexology.com/library/detail.aspx?g=2d610b74-9b15-4731-b939-4b666a382a6c.
Smith, B. 2018. “Design risk unforeseeable ground conditions and time for completion under the UAE and Qatar civil codes.” Int. Constr. Law Rev. 35 (1): 90.
Whelan, J. 2011. UAE civil code and ministry of justice commentary. Eagan, MN: Thomson Reuters (Legal).
Information & Authors
Information
Published In
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 14 • Issue 3 • August 2022
Copyright
© 2022 American Society of Civil Engineers.
History
Received: Jun 22, 2021
Accepted: Jan 20, 2022
Published online: Mar 23, 2022
Published in print: Aug 1, 2022
Discussion open until: Aug 23, 2022
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.