Clarity of contract clauses is a crucial
ing the risk. For instance, in FIDIC Red
either of the parties, vary such agree-
factor to avoid disputes and to avoid
Book 1999 sub clause 17.6 concerns
ment ...."
unnecessary high price tender.
with limiting the liabilities of the
Furthermore, the Employer should
parties.
The General conditions do
Conclusion:
stop imposing unreasonable risk on
not specify any limitation for the liabil-
It is important to understand that the
the contractor since passing ambigu-
ity however; it can be amended in the
standard form of contracts aim at allo-
ous risk from the employer to the
particular conditions. The applicable
cating the risk between the parties in
contractor may lead the later either to
law may affect this clause since under
fair manner to the party that is best
provide high price in the tender, which
some common law jurisdictions the
able to control that risk. However;
in turn makes the employer payback
employer should be aware or ought to
bespoke contracts may redistribute
for that price, or it may make the
be aware of a defect in order to start
the risks in unfair manner which
contractor drop such risk from his
c o u n t i n g
t h e
l i a b i l i t y
p e r i o d .
impose more risks on one of the
consideration which may attribute to
Furthermore, under The UAE Law,
parties which in turn lead to a dispute.
its insolvency, which in turn may affect
there is a strict liability on the contrac-
Furthermore, it is important to check
adversely the project.
tor for any defect which may affect the
the applicable Law with regard to risk
stability of the structure of the building.
allocations in the contract in order to
Law and risks allocation:
Additionally under the UAE Civil Code,
avoid any contradiction between
Understanding of contract terms and
"the parties may fix the amount of
them.
conditions and compare them with the
compensation in advance ....
The
applicable law is a key issue in reduc-
Judge may, upon the application of
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Issue 70 September 2013 2013 70

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