POWER OF EMPLOYER TO VARY WORKS UNDER FIDIC STANDARD CONTRACTS AND UAE LAW
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Date
2021-12
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Publisher
The British University in Dubai (BUiD)
Abstract
The overarching purpose of this research is to discourse and contribute to the limited body of research addressing the extraordinary power of the employer to vary according to the UAE laws and FIDIC forms of contracts. The research is inspired by the need to help parties to a construction contract understand the power of the employer and the employer’s representative to vary, and to understand the protection given to the contractor in case there is a variation instruction.
Gaining this understanding will go a long way to help reduce the number of disputes, which often slow down constructions thus affecting the industry, which immensely contributes to the economy of the UAE. Apart from interpreting different clauses in the UAE Civil Transaction Code (CTC) and FIDIC forms such as the Red Book, the paper also reviews relevant cases within and without the UAE jurisdiction.
The paper concludes that while an employer’s power to vary is indeed extraordinary, it is justified to a large extend. The intention is to ensure that the employer, who might be a novice when it comes to construction and the relevant laws, is able to complete the project regardless of unforeseen circumstances. The paper also asserts that, the contractor is protected from unfair enrichment or exploitation by the employer.
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Keywords
UAE Law, FIDIC standard contracts, FIDIC forms, UAE Civil Transaction Code (CTC), United Arab Emirates (UAE)