{"id":140562,"date":"2026-04-22T11:43:54","date_gmt":"2026-04-22T11:43:54","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=140562"},"modified":"2026-04-22T11:43:54","modified_gmt":"2026-04-22T11:43:54","slug":"oman-construction","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/oman-construction\/","title":{"rendered":"Oman: Construction"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-140562","comparative_guide","type-comparative_guide","status-publish","hentry","guides-construction","jurisdictions-oman"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Jamal Al Amri<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/04\/firm-logo-3.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Jamal Al Amri<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/04\/firm-logo-3.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Construction laws and regulations applicable in Oman<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your jurisdiction a common law or civil law jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Oman is a civil law jurisdiction. The principal source of private law for construction and engineering contracts is the Civil Transactions Law, supplemented by the Commercial Law, the Arbitration Law and sector-specific statutes and regulations. The market is, however, highly international in its contracting practice, so FIDIC-based drafting and other common-law style risk allocation mechanisms are familiar even though they operate within a civil law framework.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key statutory\/legislative obligations relevant to construction and engineering projects?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The statutory framework operates at two levels. First, at the market entry and licensing level, a party must have an appropriate legal presence and a licence for the activity it intends to carry out. Contracting businesses are regulated under Ministerial Decision 13\/2017, issuing the regulation governing the works of establishments and companies operating in contracting, which repealed Ministerial Decision 174\/2014. Engineering consultancy activities are separately regulated under Royal Decree 27\/2016 issuing the law governing the work of engineering consultancy offices, including licensing, local participation and professional supervision requirements. Where foreign investors, branches or project companies are involved, the Commercial Companies Law and the foreign investment regime also matter.<\/p>\n<p>Secondly, at the project-delivery level, the core framework usually includes the Civil Transactions Law for contract performance, compensation, force majeure, decennial liability and extra-contractual liability; the Tender Law and related public procurement rules for state projects; the Public-Private Partnership Law for PPP structures; the Labour Law for workforce and site obligations; the environmental permitting regime administered by the Environment Authority; municipal and utility permitting rules; and the Arbitration Law where disputes are referred to arbitration. Separate from statute, government standard forms and FIDIC-based contracts remain central to the allocation of project risk and day-to-day contractual obligations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any specific requirements that parties should be aware of in relation to: (a) Health and safety; (b) Environmental; (c) Planning; (d) Employment; and (e) Anti-corruption and bribery.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Health and safety is driven principally by Royal Decree 53\/2023 issuing the Labour Law, together with implementing occupational safety requirements and site-specific rules imposed by the employer, the municipality and the competent civil defence authority where relevant. Breach can lead to labour sanctions, site intervention and, where accidents occur, wider civil or criminal exposure.<\/p>\n<p>Environmental compliance is permit-led. Environment Authority Decision 107\/2023 issuing the Regulation Governing Environmental Permits (as amended), now sits at the centre of the current regime. Depending on the project, parties may need an environmental permit, an environmental impact assessment, an environmental management plan and ongoing controls on emissions, waste, hazardous substances and discharges. Breach can lead to fines, permit suspension or cancellation and remediation obligations.<\/p>\n<p>Planning control is likewise approval-based rather than centred on a single planning code. Parties commonly need municipal planning, building, excavation and road-opening approvals, together with utility consents and, where relevant, service connection permissions. Unauthorised works can lead to stop-work action, refusal of completion certification or refusal of service connections.<\/p>\n<p>Employment obligations include compliance with the Labour Law, Omanisation requirements, work permits and residence formalities for expatriate workers, working time rules, worker welfare arrangements and, where applicable, accommodation standards. Non-compliance can affect labour clearances and expose the employer to regulatory penalties.<\/p>\n<p>Anti-corruption and bribery risk is most acute on public-facing projects. The principal framework includes the Penal Law promulgated by Royal Decree 7\/2018, the Law on the Protection of Public Property and Avoidance of Conflict of Interest promulgated by Royal Decree 112\/2011, and the AML\/CFT law promulgated by Royal Decree 30\/2016. In practice, these risks are managed as much through disciplined approval processes, gifts and hospitality controls, and intermediary and subcontractor due diligence.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What permits, licences and\/or other documents do parties need before starting work, during work and after completion? Are there any penalties for non-compliance?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Before work starts, parties commonly need evidence of land rights, commercial registration and activity licensing, the relevant municipal approvals, a building permit, excavation and traffic permits where required, environmental approvals, utility and service no-objection letters, fire and civil defence clearances where applicable, labour clearances and immigration approvals for expatriate workers, and any sector-specific licences. During the works, additional approvals or renewals may be needed for road occupation, heavy transport, utility interface works, environmental monitoring, worker accommodation and changes to the approved design or scope. On completion, parties typically require a completion certificate, the relevant fire safety clearance, permanent utility connection approvals, and any commissioning or operational permits required for the asset. The exact package varies by sector, location and asset type. Non-compliance can lead to fines, stop-work orders, suspension or revocation of permits, refusal of completion or service connections, procurement sanctions and, in serious cases, civil or criminal liability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is tort law or a law of extra-contractual obligations recognised in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Oman recognises extra-contractual liability. Claims can therefore arise outside the contract, particularly for property damage, personal injury, negligence-type wrongdoing and wider third-party loss. In practice, construction disputes often involve both contractual and extra-contractual arguments, especially where multiple parties or defective works are involved.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the typical parties involved in a construction and engineering project?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The typical parties are the employer or developer, and on larger projects a project company or SPV; the main contractor or EPC contractor; design consultants, supervising engineers, architects, quantity surveyors and project managers; subcontractors and suppliers; financiers and security providers; insurers; and, depending on the sector, an operator, offtaker, utility, concession grantor or public authority. In public procurement the employer is commonly a ministry, government entity or state-owned body; in project-financed transactions it is usually the project company.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the most popular methods of procurement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Traditional design-bid-build remains common, particularly on public and conventional building works. Design-build and EPC structures are widely used in energy, utilities, industrial and process projects. EPCM and package contracting are also seen on complex industrial and hydrocarbons work. PPP and concession-style procurement continue to feature on suitable infrastructure and utility projects, usually through a dedicated project company. Re-measurement and lump-sum structures both remain common, and the choice is heavily influenced by project definition, sector and risk appetite.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the most popular standard forms of contract? Do parties commonly amend these standard forms?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Historically, the market was shaped by the Oman Standard Conditions and older government forms derived from FIDIC. That legacy remains important. Today, public works commonly use government standard forms for building and civil engineering works and other sector-specific public forms, while private and international projects still rely heavily on the FIDIC suite, particularly the Red, Yellow and Silver Books. Bespoke EPC forms are also common in oil and gas, power and major process projects. Parties do commonly amend these forms, often extensively, especially on delay damages, variation valuation, ground conditions, claims procedure, termination, performance security and dispute resolution.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions or legislative regimes affecting procurement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Public procurement is principally governed by the Tender Law and its regulations, now operating through the Projects, Tenders and Local Content Authority, with continued emphasis on transparency, competition, bidder qualification and local content. PPP projects sit under a separate PPP regime rather than the ordinary public tender framework. Bidder registration, classification, conflict rules, in-country value requirements and sector-specific licensing can all affect eligibility. In private sector projects, the restrictions are less prescriptive, but foreign investment, licensing, land rights, sanctions and sector regulation may still shape the procurement route.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do parties typically engage consultants? What forms are used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Consultants are routinely engaged, including architects, engineers, supervising consultants, project managers, cost consultants, environmental consultants, geotechnical advisers and specialist designers. Appointments are often bespoke, but FIDIC-derived consultant terms, adapted White Book-style appointments and employer-drafted forms are all seen. On public or quasi-public projects, government or semi-government standard forms may also be used.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is subcontracting permitted?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Subcontracting is permitted unless the main contract restricts it or the nature of the obligation requires personal performance. In practice, it is standard on Omani projects. The main contractor remains responsible to the employer for the subcontracted work, and subcontractors do not ordinarily acquire direct rights against the employer unless there is an assignment, novation, direct agreement or equivalent contractual mechanism.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are projects typically financed?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Large projects in Oman are financed in different ways depending on sector. Government-funded social and transport infrastructure is still commonly funded directly by the state or state-linked entities. Utility, energy, logistics and other bankable infrastructure projects are often structured through an SPV or project company using sponsor equity and project debt, frequently on a limited recourse basis. In private sector developments, corporate financing, shareholder support and conventional bank debt remain common, sometimes alongside land-backed security and sponsor guarantees.<\/p>\n<p>On the larger independent power, water, PPP and concession-style projects, the SPV remains the lynchpin of the structure. It contracts with the EPC contractor and key consultants, receives the project revenues and grants the principal security package to lenders. Mezzanine and bond structures are still less common than in some mature project finance markets, although the financing toolkit is broadening as energy transition, sustainability-linked and cross-border investment themes develop.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What kind of security is available for employers, e.g. performance bonds, advance payment bonds, parent company guarantees? How long are these typically held for?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Employers typically require performance bonds, advance payment bonds, retention, parent company guarantees and, on consultant packages, professional indemnity cover and sometimes collateral warranties or direct agreements. For public contracts, the Tender Law requires performance security equal to 5% of the awarded value or, in the case of consultancy services, professional insurance. Funders typically require a wider security package around the project company, including mortgages over assets, land rights or usufruct interests, assignments of project documents and receivables, share security and direct agreements with the main contractor and key consultants.<\/p>\n<p>As to duration, performance security is usually held until completion or the issue of the relevant performance certificate, often with a contractual tail. Advance payment security is ordinarily released as the advance is recovered through interim payments. Retention is usually released in stages, with the balance held until the defects rectification period expires. Parent company guarantees and direct agreements are typically held for so long as the underlying obligations or lender step-in exposure remain live.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there any specific legislation relating to payment in the industry?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no standalone payment statute in Oman equivalent to the UK Housing Grants, Construction and Regeneration Act. Payment is therefore governed principally by the contract, the Civil Transactions Law and, where relevant, public procurement rules, sector regulation and general commercial law. In practice, the payment regime lives or dies on the drafting: milestones, interim payment machinery, certification, set-off, suspension rights, final account procedure and claims preservation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are pay-when-paid clauses (i.e clauses permitting payment to be made by a contractor only when it has been paid by the employer) permitted? Are they commonly used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pay-when-paid provisions are not the centrepiece of the Omani market, particularly on major front-end projects. They are more likely to appear in subcontracts than in employer-contractor contracts. There is no dedicated construction payment statute that expressly outlaws them in the way some jurisdictions do, but their effect will still be tested against the wording of the contract and the wider law. In our experience, better-capitalised main contractors on significant projects tend to avoid making the entire subcontract payment chain turn on employer payment, although back-to-back risk allocation remains common.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do your contracts contain retention provisions and, if so, how do they operate?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Retention remains common. The usual structure is that a percentage is withheld from interim payments up to an agreed cap, with one portion released at taking-over or practical completion and the balance released at the end of the defects rectification period, assuming the contractor has remedied defects and no valid deductions remain. On some projects the parties instead use retention bonds, reduced retention after completion, or a stronger performance security package in lieu of substantial cash retention.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do contracts commonly contain liquidated delay damages provisions and are these upheld by the courts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Liquidated delay damages are standard in Omani construction contracts and are generally upheld in principle. The important civil law point, however, is that agreed compensation is not always untouchable: the court or tribunal may adjust the pre-agreed amount to align it with the actual loss, and parties cannot contract out of that judicial power altogether. As a result, delay damages clauses are enforceable, but they are not treated with exactly the same rigidity as in some common law jurisdictions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are the parties able to exclude or limit liability?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Parties may exclude or limit liability under Omani law, and well-drafted caps, exclusions of indirect loss and agreed risk allocation are common. That said, there are real limits. Mandatory liabilities cannot simply be contracted away. The clearest construction example is decennial liability for structural collapse or threatening defects, which cannot be excluded or reduced by agreement. More generally, a clause purporting to eliminate all consequences of a party\u2019s own wrongful act is more vulnerable than a carefully drafted cap or exclusion, and provisions that are abusive, contrary to public order or inconsistent with mandatory law may not be upheld as drafted.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on termination? Can parties terminate for convenience? Force majeure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Termination rights are largely contractual, but they are framed against the Civil Transactions Law. Default termination, insolvency termination, prolonged force majeure termination and, on many employer forms, termination for convenience are all seen in practice. Omani law also recognises rescission or discharge where performance becomes impossible by force majeure. The critical point is that notice, cure periods, certification and payment consequences need to be coherent. Termination for convenience is possible if the contract provides for it, but it should address demobilisation, payment for work done, materials ordered and any agreed compensation if obvious dispute is to be avoided.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What rights are commonly granted to third parties (e.g. funders, purchasers, renters) and, if so, how is this achieved?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Funders are the most obvious third-party beneficiaries in larger projects. They commonly receive direct agreements, step-in rights, assignments of receivables and security over project documents. Purchasers, tenants, operators or long-term users may receive collateral warranties, novations, reliance language, latent defect protection or assignment rights, depending on the asset class. Oman also recognises contractual stipulations made for the benefit of a third party, so rights can be conferred by drafting rather than only by separate contract, although the market still often prefers direct agreements or warranties for clarity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do contracts typically contain strict provisions governing notification of claims for additional time and money which act as conditions precedent to bringing claims? Does your jurisdiction recognise such notices as conditions precedent?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Strict notice provisions for extensions of time, additional payment and claims preservation are common, especially in FIDIC-based and EPC contracts. Omani law does not have a separate statutory construction claims code that displaces those provisions, so clear contractual notice machinery will generally be taken seriously. As ever, however, enforceability turns on the drafting and the facts. A plainly drafted time bar has a better prospect than a vague or internally inconsistent notice clause, and parties should not assume that a tribunal will apply ambiguous wording mechanically.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What insurances are the parties required to hold? And how long for?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Insurance is driven more by contract than by a single construction insurance statute. The standard project package usually includes construction all-risks or erection all-risks cover, third-party or public liability, workers\u2019 compensation or employers\u2019 liability, motor insurance, plant and equipment cover, and marine cargo where relevant. Consultants and design professionals are commonly required to maintain professional indemnity insurance. Depending on the project, delay in start-up, terrorism, environmental impairment and decennial-type covers may also be considered.<\/p>\n<p>As to duration, project insurances ordinarily run through the construction period and handover, with some covers extended into testing, commissioning or the defects period. Professional indemnity and other design-related cover are often maintained for a longer post-completion period. The required duration is therefore primarily a matter of contract and sector practice.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are construction and engineering disputes typically resolved in your jurisdiction (e.g. arbitration, litigation, adjudication)? What alternatives are available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Construction disputes in Oman are resolved mainly through arbitration or court litigation, depending on the contract. Larger domestic and international projects frequently choose arbitration, particularly in energy, infrastructure, EPC and cross-border transactions. Court litigation remains common on smaller projects, where there is no arbitration clause, or where urgent local relief or enforcement steps are needed. Since 2025, Oman has also established the Court of Investment and Commerce for commercial and investment disputes, which is relevant to the court track for qualifying matters. Contractual alternatives such as engineer\u2019s determination, expert determination, amicable settlement periods, dispute boards or DAAB-type mechanisms may also be used, especially in FIDIC-based contracts. Oman does not have a statutory adjudication regime of the kind seen in the UK.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How supportive are the local courts of arbitration (domestic and international)? How long does it typically take to enforce an award?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Omani courts are broadly supportive of arbitration when the arbitration agreement and award are properly constituted and the procedural formalities have been respected. Oman is a New York Convention state, and both domestic and foreign awards can in principle be recognised and enforced through the local courts. In practice, a straightforward enforcement application can be measured in months, but timing is heavily fact-sensitive. Challenges on jurisdiction or due process, service issues, parallel court arguments or asset execution problems can materially extend the process.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any limitation periods for commencing disputes in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, but the position is not governed by a single construction-specific rule. The general civil period is up to 15 years, although shorter periods apply in important categories. By way of example, extra-contractual compensation claims are ordinarily time-barred after five years from knowledge of the damage and the responsible person, subject to a 15-year longstop from the harmful act. Labour claims carry their own short limitation regime. Decennial liability claims also have a specific architecture: the liability runs for ten years from handover, but the claim itself must be brought within three years of the collapse or discovery of the defect. The correct limitation analysis therefore depends on the cause of action rather than a single construction label.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How common are multi-party disputes? How is liability apportioned between multiple defendants? Does your jurisdiction recognise net contribution clauses (which limit the liability of a defaulting party to a \u201cfair and reasonable\u201d proportion of the innocent party\u2019s losses), and are these commonly used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Multi-party disputes are common on major projects, particularly where delay, design responsibility, interface failure, ground conditions or defective work are in issue. Employers often seek to involve the main contractor, supervising consultant, designers, subcontractors, insurers and sometimes suppliers, although the contractual chain and arbitration clause structure can complicate joinder. Liability is apportioned by reference to contract, causation, fault and the particular statutory regime. Some liabilities, such as decennial liability, may expose contractor and designer together.<\/p>\n<p>Net contribution clauses are not a prominent feature of Omani construction contracting and are used far less frequently than in English-law documentation. Parties can attempt contractual allocation of responsibility, but the effectiveness of any such clause will depend on the drafting and the surrounding mandatory law. In practice, they are not a market-standard risk allocation tool in Oman.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the biggest challenges and opportunities facing the construction sector in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The biggest challenges are still execution discipline and risk allocation rather than lack of opportunity. Margin pressure, delayed certification or payment, variation management, interface risk between multiple packages, labour and local content compliance, permitting sequencing and claims preservation remain familiar stress points. On some projects there is also a mismatch between ambitious delivery timetables and the practical realities of design development, utility coordination and procurement lead times.<\/p>\n<p>The opportunities are substantial. Oman\u2019s long-term development agenda continues to support investment in energy transition, water security, logistics, tourism, housing and strategic industrial projects. For well-advised sponsors, contractors and consultants, this is a market that rewards disciplined structuring, bankable risk allocation and realistic project administration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of project are currently attracting the most investment in your jurisdiction (e.g. infrastructure, power, commercial property, offshore)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>At present, the strongest investment themes are renewable energy and green hydrogen, water and wastewater and desalination, transport and logistics infrastructure, large-scale urban development and housing, tourism and hospitality, and selected healthcare and green industrial projects. Duqm, Dhofar and the wider Muscat growth corridor continue to feature prominently. In practical terms, power, utilities, logistics and strategic industrial projects are attracting some of the most serious capital deployment, while urban expansion and tourism continue to support conventional construction demand.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How do you envisage technology affecting the construction and engineering industry in your jurisdiction over the next five years?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Over the next five years we expect technology to affect the sector in three main ways. First, digital project controls will become more mainstream: BIM, common data environments, digital reporting, drone-assisted progress monitoring and better document control should increasingly move from best practice to expected practice on major projects. Secondly, procurement and permitting are becoming more digitised, which should improve visibility and administrative speed even if not all bottlenecks disappear. Thirdly, data-led asset management, prefabrication and selective AI use in planning, quantity take-offs, reporting and contract administration should become more common.<\/p>\n<p>The change is likely to be uneven. The larger public, utility, energy and industrial projects will adopt fastest. Smaller conventional projects will move more gradually. But the overall direction is clear: better data, tighter controls and earlier visibility of delay, cost and quality issues.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What do you anticipate to be the impact from ongoing supply chain issues and the escalation of material costs over the coming year?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a direct legal and commercial driver, COVID-19 itself is no longer the dominant issue it once was. The more enduring legacy is that parties are now much more alert to supply chain resilience, procurement timing, substitution rights, escalation risk and programme float. Over the coming year we expect fewer disputes framed purely as pandemic force majeure and more disputes focused on price adjustment, variation valuation, sourcing delay, contractor productivity and responsibility for late procurement.<\/p>\n<p>In practical terms, employers and contractors are responding with earlier ordering of critical items, more detailed change-control, greater reliance on contractual escalation mechanisms where they exist, and tougher scrutiny of contingency and float. The headline shock has eased, but the discipline it forced on procurement and contract administration is likely to remain.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3810<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/140562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=140562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}