What Effect Did The Pandemic Have On The FIDIC And Force Majeure?
From low-rise buildings to skyscrapers, the United Arab Emirates led by example in the past 3 decades in terms of residential and commercial construction. The relationships between the employer, contractor, subcontractors, and other engineers were often regulated by standardized FIDIC contracts.
However, in the past 2 years when COVID 19 hit the construction industry and developments forcibly slowed down, parties to the contract faced major financial, supply, and timeframe challenges. Parties triggered clauses of the FIDIC contract which regulate their activity.
FIDIC contracts contain clauses that address exceptional risks through Force Majeure where any party to the contract is prevented from performing its obligations under the contract for exceptional circumstances such as: