Effects Of Current Regional Developments On Construction Projects In Qatar

The ongoing regional escalation and its accompanying effects may disrupt construction projects, even where the parties themselves are willing to and/or may have performed their obligations diligently and in good faith. This short note considers the potential avenues available under Qatari law for claims that may arise under construction contracts as a result of the ongoing situation.

Three legal mechanisms may be considered: Article 188, Article 171(2), and Article 172 (read with Article 63) of the Civil Code No. 22 of 2004.

First, under Article 188, the parties should consider whether the performance of an obligation under their contract has become fully or partially impossible. In the former case, the parties’ obligations will extinguish and the contract will automatically be revoked. While in the latter scenario, the creditor may elect to either enforce the remaining obligations (i.e., the part that is possible to perform) or request the revocation thereof. The applicable