Professional Documents
Culture Documents
26 October 2022
Overview
Overview of
CIArb Qatar Branch
• Officially opened in 2018
• Total number of Board Members : 15
• Total number of local members ≈ 322
Most standard forms of construction contracts provide for liquidated damages in case of
delayed completion of the works. Including liquidated damages in construction contracts has
been explained by the intention to provide certainty and to save the expenses of proving loss.
What is the concept of liquidated damages and how do they apply in the region and,
particularly, in Qatar? Do they really provide certainty? Is there any role for experts when
liquidated damages clauses provide for an agreed amount payable when the contractual
completion date is overrun? What are the best practices in approaching these? Numerous
questions arising from this important topic will be discussed during this webinar with our
experienced speakers: a lawyer will touch upon the issues from a counsel and arbitrator
standpoints while an expert will give his insight from his practice. Construction practitioners,
contract managers, consultants, experts, lawyers and in-house counsel who participate at the
webinar will have the opportunity to put their questions and share their experience at the Q&A
session.
Speakers
Liquidated Damages in Construction Disputes
Myth and Reality of the Sought Predictability
Opening Remarks Moderator: Speaker Speaker Closing Remarks
Dr. Nasser AlAdba Saad Hegazy Ahmed Habib Eng. Abduljabbar Prof. Dr. Mohamed
Managing Partner Partner Attorney, International Saifaldeen Abdel Wahab
Omani & Partners LLP Resolve International Arbitration & Dispute Qatari Court Expert CIArb MENA Trustee
Doha, Qatar AACE Qatar Section President Resolution DWF LLP, Doha & Arbitrator and Mediator Head of International Arbitration,
CIArb Qatar Branch Chair CIArb Qatar Branch Vice Chair Paris offices Zulficar & Partners Law Firm
Moderator
Saad Hegazy
CIArb Qatar Vice-Chair
AACE Qatar President
Saad Hegazy is a Delay and Quantum Testified Expert Witness, Member of the Academy of Experts with over 20
appointments, Expert Determinator, Arbitrator and CEDR Accredited Mediator based between Doha and Dubai with more
than 17 years’ experience in Delay Analysis, Construction Contracts, Quantity Surveying, Claims, and Disputes Resolution in
various industries and project types in GCC, Middle East, Asia, and Africa.
Saad has a wealth of experience and knowledge having worked on airports, metros, infrastructures, industrials, oil & gas,
water treatment, utilities, luxuries and high-rise buildings projects. His expertise extends to arbitration, mediation and
litigation work. His education includes BSc in Civil Engineering, MSc in Strategic Project Management, LLM in Construction
Law and International Arbitration.
Saad is the President of AACE Qatar Branch, and Vice-Chair of CIArb Qatar Branch, previous ICC YAF MENA Regional
Representative. Saad is a Fellow of the Chartered Institute of Arbitrators (FCIArb), Expert Witness and Member of the Royal
Institution of Chartered Surveyors (MRICS), CEDR Accredited Mediator, and Arbitrator listed at QICCA, SCCA, CIArb, and
W&W rosters.
Guest Profile
Dr. Nasser Al-Adba is an accomplished and highly recognized lawyer in Qatar and MENA region, having studied and practiced
law extensively throughout the world. He specializes in the drafting and review of major construction contracts and practices
the fields of International Investment Law and International Trade and Dispute Resolution, having been chosen for the World
Trade Organization roster of panelists in World Trade Organization (WTO).
He is renowned for his skills as a commercial negotiator; mediator and arbitrator in Arbitration & Alternative Dispute
Resolution (ADR) . He is full time assistant Professor teaching the areas of Public International Law, ADR and Investment
Arbitration at Qatar University (QU).
Recently, elected as the Chair of Chartered Institute of Arbitrators CIArb – Qatar and Qatar Financial Center (Branch).
Academics:
• Ph.D. in International Investment Arbitration from University of Manchester, UK • G.D.L. in International Negotiation. Mediation
and Dispute settlement from Harvard Law School, USA • L.L.M. from Graduate Institute of International and Development
Studies, Geneva, Switzerland • L.L.B. Qatar University, Qatar.
Speaker Profile
Ahmed Habib
Attorney-at-Law, DWF LLP
Ahmed Habib is an Attorney-at-Law, Member of Paris & Cairo Bars. He is an international arbitration and dispute resolution
specialist, practising at DWF LLP. His practice emphasises on Europe, the Middle East and Africa.
He acts as counsel and arbitrator and is on the list of arbitrators of the ICC French National Committee. He has handled
international arbitrations subject to a variety of applicable laws (civil and common law), covering several jurisdictions and
conducted under the auspices of various arbitration centres (notably the ICC, ICSID, CRCICA, DIAC, LCIA and PCA) as well as
ad hoc arbitration proceedings. His experience has covered a wide range of industries, including construction.
He is a member of the ICC Commission on Arbitration & ADR and was appointed as member of the committee entrusted with
the reform of the Egyptian arbitration law.
Liquidated Damages in Construction Disputes
Myth and Reality of the Sought Predictability
Ahmed Habib
Attorney-at-Law, DWF LLP
dwfgroup.com
My Presentation will touch upon the following
questions:
Definition
• Clauses reflecting a fixed rate, agreed in advance, to compensate the
employer for the delay of the contractor, if any
Reflects a daily rate for every day of delay from the agreed completion date
until the actual completion date
• For example, Sub-clause 8.7 of the 1999 FIDIC Red Book provides in part as
follows:
“If the Contractor fails to comply with Sub-Clause 8.2 [Time for Completion], the Contractor shall subject to
Sub-Clause 2.5 [Employer’s Claims] pay delay damages to the Employer for this default. These delay
damages shall be the sum stated in the Appendix to Tender, which shall be paid for every day which shall
elapse between the relevant Time for Completion and the date stated in the Taking-Over Certificate. However,
the total amount due under this Sub-Clause shall not exceed the maximum amount of delay damages (if any)
stated in the Appendix to Tender."
• Generally common law courts validates or invalidates the clause but, when validated, they do
not interfere with the agreed amount
• Under English law, courts are mandated to balance the provision against the legitimate
interest of the party seeking to enforce it or, alternatively, to consider whether there is a
commercial justification for the clause (UK Supreme Court in Cavendish Square Holdings BV v.
Tatal El Makdessi [2015] UKSC 67).
Civil law
- To enforce (or not) the liquidated damages clause in certain circumstances; but also
(i) On the one hand, the position taken for instance by Qatar, Egypt and Bahrain
(ii) On the other hand, the position taken for instance by Jordan, Oman and the UAE
Under the law of these jurisdictions, in principle, a liquidated damages clause is valid and
enforceable. Yet, these laws empower the arbitrators and the courts: (i) not to enforce the
liquidated damages clause if there was no actual harm or; (ii) to decrease the amount of liquidated
damages if it was grossly/greatly exaggerated in comparison to the loss actually suffered
Whilst the laws of those jurisdictions also entitle contractual parties to agree on liquidated
damages amount in their contracts, they empower the arbitrators and the courts in all cases if
requested by one of the parties to entirely disregard the liquidated damages clause and assess the
damages as equal to the actual loss incurred by the employer
• Think at the same time of the law governing the liquidated damages
clause pursuant to your contract and get a legal advice
This is a good practice to be done: (i) at the phase of drafting of the clause as well as;
(ii) the phase of its execution to check the law’s impact on the clause’s applicability.
Getting a legal advise from the competent persons is definitely the right business decision.
Ahmed Habib
Attorney-at-Law (Counsel and Arbitrator)
DWF LLP
E Ahmed.Habib@dwf.law
Abduljabbar has over 30 years of experience in the fields of oil & gas, construction, manufacturing and international
collaborative and JV agreements, in Qatar and internationally. He is a member of the Chartered Institute of Arbitrators (CIArb)
and registered arbitrator at LCIA and QICCA. He is a certified mediator by the National Association of Certified Mediators
(NACM), International Mediation Institute (IMI) and CIArb. He is a subject matter expert registered with Qatar courts and
Ministry of Justice and a certified FIDIC contracts claim determiner. Abduljabbar holds a master’s in professional civil
engineering from the University of Northern Arizona, BSc in oil and gas from the University of Southern California, LLM in oil &
gas law from the University of Aberdeen, LLM in International business law from the University of Cumbria, and currently doing
an LLM in construction law at RGU in Aberdeen. He is a member of the American Society of Civil Engineers, Society of
Petroleum Engineers, and Society of Construction Law. He has handled over 300 civil and commercial disputes in construction
and Oil & Gas sectors, with claims of up to QAR 3 billion.
Liquidated Damages in Construction
Disputes:
Myth and Reality of the Sought
Predictability
(An expert’s perspective with a Qatar focus)
Abduljabbar Saifaldeen
MCIArb, LLM-Oil & Gas, LLM –IBL, LLM-Const., MEng (Civil), BSc - PetEng
Arbitrator, mediator, expert adjudicator
4. Unliquidated damages
• determined post-breach of contract (not pre-specified in the contract)
• remedies for the contractor – Prolongation/disruption cost, compensable termination,
price escalation, change of circumstances
5. Payment delay LD
• normally interest and financial charges (i.e., Clause 14.8 FIDIC Redbook)
• not common in Qatar construction contracts
• remedy for the contractor, but what if no interest/financial - what other remedies are
available for the contractor?
6. Consequential damages
• loss of use damages and lost profits, consultant fees, (direct and indirect)
• could be potentially an enormous risk, for both the owner and contractor
• normally the practice is to include a limitation or waiver clause, except for fraud or gross
negligence
2. The LD/EOT Dilemma
2. 10% loss of contract value is a huge hit for the contractor, it may
wipe out his margin or render the project a loss
3. The contractor will normally resort to EOT claim (often with an eye
on prolongation cost recovery and the practice of “get the time first
and the money will follow”)
6. None Compliance with contractual conditions precedent and time bar for
claim application and evaluation, if applicable
6. The court expert determination is not binding, it requires the final court
approval
In this case case, the Court of Cas upheld the Appeal Court’s decision that when the
construction contract was terminated earlier by the Court on owner’s request, previous
agreed LD provision will no longer be applicable and nullified, and owner will not succeed in
seeking contractual LD damages against the contractor, even if the LD was established prior
to contract termination. (narrated from the original Arabic decision - unofficial translation)
Note:
This is an interesting decision from the Court of Cassation and one that may need a deeper prognosis,
based on more recent Qatar case law authorities, if available. The same issue came recently to UK’s
Supreme Court decision in Triple Point Technology v PTT [2021] UKSC 20, (reversing a Court of Appeal
ruling) that asserted the contractor, although the contract was terminated, remained liable for LD for
incomplete or unapproved work
6. Suggestions to Enhance the Enforcement Predictability of LD
4. LD needs to be treated as a reasonable compensation for the owner, and not applied as
to penalize the contractor
5. A Balanced and events-triggered EOT clause should go hand-in-hand with the LD clause
6. Clearly and unambiguous clauses on availability (or lack) of additional remedies for
genuine damages beyond the LD period and in the event of contract termination
7. Remedy clauses for delayed contractor payments – EOT could be one option
Thank you for your attention
Abduljabbar Saifaldeen
• MCIArb arbitrator
• Expert adjudicator– Oil & Gas, Construction, Manufacturing,
Furniture and Fitout, JVA,JOA
• Certified Mediator (CIArb, IMI, NACM, PDSL)
• Certified FIDIC Claim Assessor
• LLM (oil & gas), LLM (IBL), MEng (Civil), BSc (PetEng), LLM
(Const. – ongoing)
Prof. Dr. Mohamed Abdel Wahab is a Professor of International Arbitration, Private International Law and English Contract Law at
Cairo University; Founding Partner and Head of International Arbitration, Construction and Energy Groups at Zulficar & Partners Law
Firm (Egypt); ICCA Treasurer & Member of the Governing Board; Dean of the Africa Arbitration Academy; Chair of the International
Expert Committee of the Permanent Forum for China Construction Law; Vice-Chair of the ICC Governing Body for Dispute Resolution
Services; Co- Chair, IBA Arab Regional Forum; Vice-Chair of the Advisory Committee of the CRCICA; Member of the CIMAC Court of
Arbitration; Member of the Advisory Board of the MIAC; Member of the LACIAC Court of Arbitration; Member of the ITA Academic
Council; Member of the Advisory Board, Indonesian Arbitration Centre; and Member of the Court, PCA.
He served as ‘Arbitrator’, ‘Legal Expert’ and ‘Counsel’ in more than 245 cases, involving parties from the Africa, Asia, Canada, Europe,
the Middle East and the United States. He featured in cases under the auspices of the AAA, BCDR (Bahrain), ADCCAC (UAE), CRCICA
(Egypt), DIAC (UAE), DIFC-LCIA (UAE), ICC (France), ICSID (USA), KIAC (Rwanda), LCIA (UK), LMAA (UK), QICCA (Qatar), RCICAL
(Nigeria), SCC (Sweden), SIAC (Singapore), TIAC (Uzbekistan), as well as ad hoc UNCITRAL proceedings, involving mega multi-
hundred million dollars disputes involving private parties, investors, States and State-owned entities. He received the LAW Magazine
2017 Best Legal Practitioner Award, the 2018 ASA International Arbitration Advocacy Prize, the 2019 AYA Hall-of-Fame African
Arbitrator Award, the 2020 and 2021 Client Choice International Award. He is listed in Who’s Who Global Elite Thought Leaders:
International Arbitration (2021 and 2022); selected among the Legal500 Africa Powerlist (2021) and the AYA’s Africa's Top 30 Powerlist
(2021). He is the coeditor (with Prof Maxi Scherer and Ms. Niuscha Bassiri) of “International Arbitration and the COVID-19 Revolution”
(2020); coeditor (with Prof Ethan Katsh and Mr. Daniel Rainey) of “Online Dispute Resolution: Theory and Practice” (2021); and is the
author of the Abdel Wahab Pandemic Pathway to Virtual/Remote Hearings.
Thanks