Research / Research News / BUiD’s alumna and Professor co-author a research paper on Termination of Construction Contracts under UAE Law
Sarah Kadri, BUiD’s alumna and Prof. Aymen Masadeh Dean of Faculty of Business & Law, co-authored a research paper titled, ‘Termination of Construction Contracts under UAE Law: Overlooked Risks for Contractors Using’ in the American Society of Civil Engineers (ASCE) journal.
Their study sheds light on the growing importance of contract termination in the UAE’s construction industry, particularly in the wake of disruptions caused by the recent pandemic. As one of the country’s key economic sectors, construction faced significant challenges during this period, with many stakeholders struggling to meet contractual obligations. This led to widespread project delays and, in some cases, the termination of contracts.
The research examines how contract termination is addressed under UAE law and the FIDIC Red Book 2017, providing a comparative overview of the legal frameworks governing such decisions. It highlights how termination clauses, while offering protection to some parties, can also expose others to substantial risks.
The study concludes that contract termination is legally permissible under both UAE law and FIDIC provisions, provided specific conditions and procedures are met. However, it emphasises the critical need for contractors to fully understand their legal rights, obligations, and potential risks before initiating termination. Careful contract drafting and informed decision-making are essential to avoid unintended legal and financial consequences.
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