Obligations of the Employer upon completion of Works by the Contractor under Qatari Law

• By Azeez Nazar Sabri

Qatari Law is based on the Sharia law, however the commercial laws in the Qatar are mixture of Sharia and Civil Law. Although Principle of freedom of Contract is recognized under Qatari Law, the Concept of the “good faith” is applicable to in the civil and commercial Law of Qatar. The concept of “good faith” is akin to the principle of equity in Common Law. 

The principle of “Good Faith” is stipulated in Article 172 of the Qatar Civil Code.

1. The contract must be performed in accordance with its contents and in a manner which consistent with the requirements of good faith.

2. The contract is not confined to obliging a contracting party to its contents, but also include its requirement in accordance with the law, custom and equity as per the nature of the obligation.” 

Thus where the contracting parties choose Qatari Law as “governing Law” the Contract provisions are subject to the Qatari Law, in case of inconsistency Qatari Law shall prevail.    

The Obligation of the Employer  upon Completion of Works by a Contractor are stipulated in Qatar Civil Code from Article 692-700. Relevant provisions as under:

Article 693, Civil Code (Law No. 22/2004):    

When the contractor completes the works and places them at the employer's disposal, the employer shall, as soon as possible, take delivery in accordance with prevailing custom. When the employer, in spite of being formally summoned, fails without reasonable cause, to take delivery of the works, the works will be deemed to have been delivered to the employer.

Article 694, Civil Code (Law No. 22/2004):

(a) an employer may refuse to take delivery if the defect in the works or violation of the mutually agreed conditions exceed such an extent that they would not serve the intended purpose.

 (b) If the defect or violation are not of such seriousness, the employer' shall only be empowered to reduce the consideration in proportion to the significance of the defect or shall oblige the contractor to rectify the defect within a reasonable time limit to be fixed by himself such rectification is feasible and does not involve exorbitant costs.

Article 697, Civil Code (Law No. 22/2004):

In the absence of a custom or an agreement to the contrary, the price is payable upon the contractor's delivery of the works.

Article 698, Civil Code (Law No. 22/2004):

(1) When the works consist of several parts or if the consideration is fixed on a unit price basis, the contractor may be paid for the amount of work actually completed after the inspection and acceptance thereof, provided that the completed part shall be a substantial part or adequately significant part of the entire works unless otherwise agreed upon.

(2) Upon payment of the consideration it shall be presumed that the completed part has been inspected and accepted unless he proves that the payment is made on account of or if the custom otherwise provides.

Thus as per Qatari law upon Completion of works by a Contractor, it is obligation of the Employer to accept the works and pay the dues of the Contractor , unless the works are defective works.  

* The translation of above articles of Qatar Civil Code is unofficial English Translation, reference should be made to Arabic Text.