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18 May 2022

17 Shawwaal 1443

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Law no (22) of 2004 Regarding Promulgating the Civil Code

Law Summary Record Type: LawNumber: 22Date: 30/06/2004 Corresponding to 13/05/1425 HijriNumber of Articles: 1188Status: In force

Official Gazette :Issue: 11Offcial Journal Issue Publication Date: 08/08/2004 Corresponding to 22/06/1425 HijriPage from: 364

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Subsection 2: Special Provisions Relating to Building and Construction Contracts

708 Article

Where the contract is made on an estimated measurement basis and, during the progress of the work it is deemed necessary to exceed the assessed measurements to execute the agreed design, the contractor shall notify the employer thereof, stating the extent of the increase in costs. Failure to do so shall result in the contractor losing the right to reimbursement for the extra costs incurred.
Where such extra costs required for the execution of the design are substantial, the employer may withdraw from the contract and stop such execution without delay, provided that the contractor is paid for the works completed by him, assessed in accordance with the conditions of the contract, without any indemnity against the contingent profit of the contractor in the event of completion of the work.

Where the contract is made for a lump sum on the basis of a design agreed with the employer, the contractor may not demand any increase in his dues as a result of any amendment or addition to such design, except if caused by or on behalf of the employer, and the employer shall agree with the contractor on the extra amount in connection with such amendment or addition.

710 Article

Where a building or other structure is constructed on land owned by the employer and there are substantial defects therein to the extent as described in clause 1 of Article 694 herein, and the removal of such building or structure may result in serious damage, the employer may only demand a reduction in the dues of the contractor or require him to repair such damage in accordance with the provision of clause 2 of the said Article, subject to the employer's right to indemnity, if any.

711 Article

The contractor and the engineer shall be jointly liable for any collapse or defect, either in whole or in part, of the buildings or other fixed structures constructed by them, even if such collapse or defect arises from a defect in the land itself or the employer has authorized such defective buildings or structures. Such liability shall include any defects that may appear in the buildings or other structures which may threaten the safety and stability thereof.
Where the parties intend that the buildings or structures remain on the land for less than ten (10) years, liability shall be valid during any shorter period. In all events, the term shall commence from the date the work was awarded.
The provisions of this Article shall not apply to any right of recourse by the contractor against the subcontractors.

712 Article

Where the work of the engineer is limited to the design of the building or structure in whole or in part, the contractor shall be liable for such defects that may arise from the design but not for defects due to the method of construction and execution.
Where the employer assigns the engineer to supervise the execution in whole or in part, such engineer shall also be liable for such defects that may arise from the method of execution supervised by him.

713 Article

The contractor shall be liable only for defects of execution to the exclusion of defects from faulty design, unless such defects can be reasonably detected by the contractor according to professional practice.
However, the contractor shall be liable for defects arising from the design if the engineer who prepared the design is employed by the contractor.

714 Article

An action for liability shall prescribe after the expiry of three years from the time of the collapse of the building or structure or the detection of a defect therein.
715 Article

Any provision intended to discharge the contractor or the engineer from liability or to limit such liability shall be void.