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ARTICLE · 25 MARCH 2015

Liquidated Damages And Applicability In Construction Contacts In Qatar

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
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Charles Russell Speechlys LLP

Charles Russell Speechlys LLP

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Provisions for the payment of liquidated damages ("LD Provisions") are often included in construction contracts.

QatarReal Estate and Construction

Introduction

Provisions for the payment of liquidated damages ("LD Provisions") are often included in construction contracts. The critical question to any party new to contracting in Qatar is 'whether or not the term negotiated into the contract will be enforceable?'

Article 171(1) of Law no (22) of 2004 Regarding Promulgating the Civil Code 22 / 2004 (''the Civil Code'') provides an overarching principal to the effect that a contract between the parties must be honoured by them. Article 171(1) provides that:

"a contract is the law of the contracting parties, and so cannot be revoked or modified except with the agreement of the parties or for such reasons as prescribed by law"

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