Decennial Liability In The Middle East: What Is It And Does Insurance Cover It?

Decennial liability exists in many countries, and is enshrined in the relevant Civil Code of many civil law jurisdictions, such as France, Egypt, the United Arab Emirates (UAE), Oman, Qatar, Bahrain and Saudi Arabia.¹ These statutory provisions impose 'strict liability', that is, liability arises without the claimant having to prove fault or causation. In other words, a presumption of liability is created.

When does it apply?

The liability arises if the subject matter of the contract in question is the construction of a structure (ie/ a building or a fixed installation) with an intended installation life of 10 years or more, where the plans are drawn-up by an architect or engineer to be carried out by a contractor. The contractor and the supervising architect or engineer are jointly and severally liable to the employer for a period of ten years (as the name suggests) from the date of delivery of the works in respect of serious structural defects or collapse.