Construction contract (muqawala)In Arabic: عقد المقاولة

Definition

A construction contract (muqawala) is a contract by which a contractor undertakes to make a thing or to perform work for a price, without being the employer’s subordinate or the employer’s agent.

How it varies across the GCC

Article 461 of the Saudi Civil Transactions Law defines it, and article 471 deals with restoring the balance if exceptional general circumstances arise. Bahrain’s Civil Code states it in article 584, and Oman’s Civil Transactions Law in article 626.

The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.

Sources

Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.

1. Saudi Civil Transactions Law, art. 461, 471https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/655fdb42-8c96-422b-b8c4-b04f0095c94c/1
2. Bahrain Civil Code, Decree-Law No. 19 of 2001, art. 584https://www.lloc.gov.bh/Legislation/HTM/L1901
3. Oman Civil Transactions Law, Royal Decree 29/2013 (text on qanoon.om), art. 626https://qanoon.om/p/2013/rd2013029/