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ARTICLE · 23 NOVEMBER 2015

Descoping In Construction Contracts In The UAE

Fenwick Elliott LLP
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As Heba Osman explains, in the aftermath of the 2008 global financial crisis, many employers in the UAE turned to descoping large parts of construction works as a quick exit strategy from uncompleted projects. Other employers resorted to termination.

United Arab EmiratesReal Estate and Construction

As Heba Osman explains, in the aftermath of the 2008 global financial crisis, many employers in the UAE turned to descoping large parts of construction works as a quick exit strategy from uncompleted projects. Other employers resorted to termination.

Descoping is usually instructed by employers as a variation omitting large parts of the works. Many employers appear to believe that they are contractually entitled to descope, which in part is true. However, many employers instruct the omission of large parts of the works for one of the following reasons:

(i)   Funding problems: during the life of the project, the employer becomes unable to continue funding the project. The project has simply become too expensive for the employer.

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