Reducing contract disputes: A comparative analysis of FIDIC and GCC standard general conditions of contract for construction projects

Contractors working in foreign countries face challenges and disputes due to differences between customized general contract conditions and the standard conditions of Fédération Internationale des Ingénieurs-Conseils (FIDIC) contracts. In the Gulf Cooperation Council (GCC) region, these conditions are primarily FIDIC-based but customized to local laws and practices. This study addresses the gap in understanding how these customizations impact contract administration and aims to minimize conflicts. The research compares FIDIC clauses on "Commencement, Delay, and Suspension," "Variation and Adjustments," and "Claims, Disputes, and Arbitration" with GCC standard clauses, focusing on party roles, time restrictions, repercussions, and entitlements. Using a comparative analysis methodology, the study examines contract documents and legal frameworks across GCC countries. Key findings reveal that late commencement notices can lead to significant delays and damages, with varied implications across Kuwait, Qatar, and the UAE. Additionally, contractors might incur costs for engineering services during delays. Variation and dispute procedures vary, with Kuwait, Qatar, and Saudi Arabia favoring litigation, while Bahrain, Oman, and the UAE prefer arbitration. This research enhances understanding of the key differences between adopted and standard contract provisions, offering insights to better manage construction projects in the GCC region.