Civil Transactions Law · Federal Decree-Law 25 of 2025
Article 828
Section Three: Employment Contracts > Chapter One: Muqawala Contract > Part Two: Effects of Muqawala ContractFirst: Obligations of the Contractor
English translation
1. If the contract is concluded pursuant to a bill of quantities (BOQ) calculated on a unit-price basis, and it becomes apparent during the course of the work that, in order to execute the agreed design, it is necessary to exceed the estimated bill of quantities to a non- burdensome excess, the contractor shall notify the employer thereof, stating the expected increase in the consideration. If the contractor fails to do so, their right to recover the expenses exceeding the value of the estimated bill of quantities shall lapse.
2. If the excess required to execute the design is burdensome, the employer may be released from the contract and suspend the execution thereof, provided they do so without delay and compensate the contractor for the value of the works they have completed as estimated in accordance with the terms of the contract; alternatively, the employer may request the contractor to proceed with the execution, subject to the employer’s obligation to pay the value of the increase in the consideration.
Official translation, as published by the portal.
Official Arabic text
.1 إذا أُبرم العقد بمقتضى مقايسة على أساس الوحدة وتبيّن في أثناء العمل أنه من الضروري لتنفيذ التصميم المتفق عليه مجاوزة المقايسة المقدرة مجاوزة غير مرهقة، وجب على المقاول أن يخطر صاحب العمل مُبيّنًا مقدار ما يتوقعه من زيادة في البدل، فإن لم يفعل سقط حقه في استرداد ما جاوز به قيمة المقايسة من نفقات.
.2 إذا كانت المجاوزة التي يقتضيها تنفيذ التصميم مرهقة، جاز لصاحب العمل أن يتحلل من العقد ويوقف التنفيذ على أن يكون ذلك دون إبطاء مع إيفاء المقاول قيمة ما أنجزه من الأعمال المقدرة وفقًا لشروط العقد أو أن يطلب من المقاول الاستمرار في التنفيذ مع التزامه بدفع قيمة الزيادة في البدل.
What it means when you sign
This article deals with a contract priced on a bill of quantities (BOQ) at unit prices, where the work turns out to need more than was estimated. If exceeding the estimate is necessary to carry out the agreed design and the excess is not burdensome, the contractor must notify the employer and state the expected increase in the consideration. If the contractor does not, their right to recover expenses above the estimated value lapses. If the excess is burdensome, the employer may withdraw from the contract and stop the work, provided they act without delay and pay the contractor the value of the work already done, estimated under the contract terms. Alternatively, the employer may ask the contractor to continue, and must then pay the increase.
For a contract about to be signed, this article is relevant to clauses on quantities, variations and price adjustment. It means the contractor's notice of expected cost increases matters, and an employer has options if the increase is heavy.
Not yet cited in a Fahm report; shown because it sits in the same chapter as one that is.
Related articles
- Article 817In a muqawala contract, where a contractor carries out work for an employer, this article says who supplies the additional machinery and tools needed to finish the work.
- Article 818Cited in Fahm reportsThis article sets out how the contractor must carry out the work and what the employer may do if it goes wrong.
- Article 819The contractor is liable for any damage or loss that results from their own act or workmanship, whether it arises from their transgression or negligence or from some other cause.
- Article 829Cited in Fahm reportsThis article covers a contractor who agrees to do work from an agreed design for a lump-sum price.
- Article 830This article answers what happens when a contract for work does not state the price for the work.
- Article 18This article says which country's law governs property.