In our June market overview we are seeing that the low
price of oil is continuing to affect the economy in Qatar, with
cut-backs and redundancies evident. However, despite the slow-down
it is forecast that US$22.2 billion will be spent on infrastructure
projects this year as Qatar presses ahead with its commitments to
hosting the FIFA 2022 World Cup and to realising the Qatar National
Vision 2030.
Analysing the impact of the reduced spend across construction
works we have identified the following trends:
- general slow-down in projects;
- late(r) payment;
- increase in internal JV disputes; and
- contractual manipulation by strategic de-scoping of works.
As a result formal disputes are on the rise. For organisations
that are contemplating formal dispute resolution proceedings here
are some of the key issues for consideration, both at the outset
and during a dispute.
