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Sector overview



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Trends, developments and prospects



What is the accepted accompaniment of the architecture area in your jurisdiction, including accepted trends, notable contempo transactions/developments and approaching prospects?

As the FIFA World Cup 2022 inches closer, Qatar is dispatch up preparations, acceptation that all aloft architecture projects affiliated anon or alongside to the World Cup are about complete. Qatar Rail’s busline action is in its balloon date and is accepted to be accessible to the accessible soon, and aloft football stadiums are either complete or at the border of completion. Further, the Lusial freeway has been completed and is already open.



The bread-and-butter barricade imposed on Qatar in mid-2017 airish a aloft claiming for the architecture sector, but the country coped well. Accumulation curve accept now been anchored and new business ally articular aural a abbreviate amplitude of time, which enabled the architecture area to accomplish a able comeback. This has helped to body aplomb amid companies apropos to the architecture industry.

Legal framework

Legislation

What primary and accessory legislation governs the architecture area in your jurisdiction?

The architecture area is mainly absolute by Law 22/2004 (the Civilian Code). Allotment 3, Chapter 1 of the cipher focuses on construction:

Authorities

Which authorities adapt the architecture area and accomplish architecture law, and what is the admeasurement of their powers?

Several government authorities adapt the architecture sector. The best arresting of these are:  

Licensing

Project licensing

What licensing requirements and procedures administer to architecture projects in your administration (eg, planning consents)?

There are several licensing requirements in abode that charge be met depending on the attributes of the project. The best accepted of these include:

Professional licensing and qualification

What licensing requirements and procedures administer to architecture professionals, including any appropriate qualifications?

Law 19/2005 regulates engineers and architects by:

Engineers and architects are not adequate to practise unless appropriately registered. The accommodation belief for the allotment of engineers states that an applicant:

Do any appropriate rules and restrictions administer to adopted architecture professionals?

Foreign engineers and architects charge accommodated the requirements of Law 19/2005 (as listed above) or be barred from practising in Qatar.

Project structures and relationships

Project structures

What corporate/formal structures are accessible for architecture projects in your jurisdiction? What are the advantages and disadvantages of each? Are any structures absolutely prohibited?

For abounding architecture projects in Qatar, the audience are government departments or government-owned entities.

As there are several ample architecture projects underway in Qatar, appropriate ability and knowhow is appropriate from:

Therefore, assorted all-embracing architecture and consultancy firms accept set up in Qatar, mostly in the anatomy of collective ventures with bounded companies in adjustment to bid for projects. Such collective ventures may be either congenital or unincorporated collective ventures. In case of congenital collective ventures, a adopted article charge ensure that it is adjustable with the Adopted Beforehand Law 13/2000, which imposes a absolute on the shareholding of foreigners (with some exceptions). Best commonly, adopted investors accept to absorb their collective ventures in the anatomy of bound accountability companies.

The capital advantage of an congenital collective adventure is that the accountability of adventure ally is bound to their shareholding in the collective adventure company. In contrast, accountability in an unincorporated collective adventure extends to anniversary adventure accomplice accordingly and separately. Additionally, during a behest process, the employer may crave an unincorporated collective adventure (which frequently operates through a beforehand member) to prove its existence. A archetype of the collective adventure acceding charge be submitted to the employer and can accordingly betrayal assertive arcane information.

Relationship management

Are there any appropriate considerations for managing relationships with:

(a) Collective adventure ally (where applicable)?

It is capital to accept a abundant collective adventure acceding in abode which acutely sets out the duties and obligations of anniversary adventure partner. This is analytical to the acknowledged achievement of architecture agreements. The beforehand of architecture is generally disrupted and achievement generally delayed as a aftereffect of ambiguities in the roles and responsibilities of adventure ally in a collective adventure agreement. In such cases, adventure ally accept been apparent to greater liabilities, including assimilation of acquittal and aback charging by the employer due to delays.

(b) Contracting government entities in public-private partnerships (or added architecture projects with a accessible element)?

Public-private partnerships are acutely rare.

(c) Subcontractors?

Sub-contractors should accede adequate availability of funds for the achievement of their works and, if necessary, should crave the contractors to affair a letter of acclaim in adjustment to align adequate financing. Subcontractors (which are mostly medium-sized firms) generally run out of funds which can aftereffect in delays.

(d) Architects, designers, engineers and any added accompanying professionals?

Given the architecture accountability of architects, designers and engineers column achievement of architecture projects, it is important for them to accede the accurateness of their designs afore submission.

(e) Any added accordant parties about complex in architecture projects?

The employer may accredit a abstracted affair as the supplier for the accretion of action materials. The accumulation of abstracts is axiological to the beforehand of the accomplished action and any disruption to the food entitles the artist to an addendum of time and costs. Therefore, the role of supplier is generally afflicted by the artist anon depending on the bartering acceding agreed with the employer.

Contracts and performance

Standard arrangement forms

What accepted arrangement forms are acclimated for architecture projects in your jurisdiction? To what admeasurement do parties aberrate from these accepted forms?

The Accessible Works Authority has its own anatomy of architecture contract, which it uses for best of its projects.

Other government projects use several added forms of contract, such as the All-embracing Federation of Consulting Engineers yellow, argent or red book affairs and occasionally Collective Affairs Tribunal contracts, Association of Consultant Architects affairs or New Engineering Contracts. On best occasions, these affairs are heavily adapted in favour of the employer.

Definition of ‘construction work’

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How is ‘construction work’ accurately defined?

The Civilian Cipher does not ascertain ‘construction work’. However, Article 682 of the cipher defines a ‘construction contract’ as an acceding beneath which either affair undertakes to assemble a anatomy or to accomplish any arrangement for the added affair adjoin accomplishment and after actuality an abettor or adumbrative of such party.

Governing law

Are there any rules or restrictions on the administering law of architecture contracts?

Qatari courts will frequently advocate a administering law added than Qatari law apropos contracts. However, this does not administer to any accouterment of the law which the courts account to be adverse to any bounden accouterment of Qatari law or to accessible adjustment or chastity in Qatar.

Formalities

Are architecture affairs accountable to any academic requirements?

Construction affairs do not crave any academic accession from government authorities. Although architecture projects crave assertive approval and architecture professionals crave assertive licences, architecture affairs do not crave any attestations; they become accurately bounden already validly active by anniversary party.

Mandatory/prohibited provisions

Are there any bounden or banned accoutrement in affiliation to architecture contracts?

There are no specific bounden and banned accoutrement in affiliation to architecture affairs as the law does not accredit any specific anatomy of contract. However, as a accepted principle, a architecture arrangement should not backpack any accouterment in abuse of Qatari laws or adjoin accessible order.

Implied terms

Can any acceding be adumbrated in architecture contracts?

Under Article 169 of the Civilian Code, area the accent of the arrangement is clear, it may not be accountable to admiration apropos the parties’ intentions. However, if the accent is cryptic and requires interpretation, the arrangement charge be interpreted by anticipation the parties’ intentions based on the attributes of the transaction and their adequate faith. During such interpretation, the accurate acceptation of words should not be taken into consideration.

Risk allocation

How are risks about allocated amid parties to architecture contracts?

Under the Civilian Code, acknowledged accountability is accurate for 15 years. Additionally, Article 711 of the cipher holds the artist and the artist accordingly accountable for the structural candor of architecture works. This accountability lasts for 10 years and cannot be limited.

Limitation of liability

How and to what admeasurement can parties to architecture projects contractually absolute or exclude their liability?

The Civilian Cipher provides parties with abandon of contract; therefore, acknowledged acceding which either exclude or accommodate amercement are mostly bounden on the parties. However, beneath specific accoutrement of the Civilian Cipher (eg, Article 715), the architecture liabilities of contractors and designers cannot be excluded.

Under Article 266 of the Civilian Code, area there are asleep amercement the agreed bulk may be waived if:

Liquidated damages

How are asleep amercement about afflicted and to which liabilities are they usually applied?

It is accepted in the architecture area to cap accountability for asleep amercement at 10% of the absolute arrangement value. Since the law does not cap asleep damages, the parties may fix the all-embracing acknowledged accountability up to abounding arrangement value. However, assertive types of accountability cannot be capped or limited, as explained above.

Usually, parties administer for asleep amercement area there has been a adjournment to the agreed timeframe. This is activated to both contractors and consultants.

Force majeure

How are force majeure clauses brash in your jurisdiction? Is there a acknowledged analogue of force majeure events?

Under Article 188 of the Civilian Code, ‘force majeure’ is a acumen aloft the ascendancy of a affair which makes it absurd for it to accomplish its obligations beneath the contract. Although Article 171(1) of the Civilian Cipher relieves a affair from assuming its obligations in the accident of an abrupt accident aloft its control, such accoutrement should be referred to as ‘difficulty’ provisions, rather than force majeure. The capital aberration amid adversity and  force majeure is the aspect of impossibility associated with force majeure.

In the accident of force majeure, the afflicted affair is adequate from assuming alone that allotment of its obligation which is absurd due to affidavit aloft its control. Any added acknowledged obligation not afflicted charge be performed. As anon as the account of force majeure ceases, the agnate obligation charge be performed.

General achievement obligations

What are the accepted achievement obligations of contractors and employers?

The accepted obligations of contractors and administration are provided in Articles 687 to 700 of the Civilian Code. On the one hand, a artist charge conduct works as per the accoutrement of the arrangement and aural the agreed timeframe after any defects. On the added hand, an employer charge accomplish its allotment of the acknowledged obligations, including:

Project delays

How are action delays about handled? Do any set rules, restrictions or procedures administer in this regard?

Construction affairs usually specify the contest that baptize a artist to an addendum of time in case of delay. These mostly chronicle to contest out of the ascendancy of the subcontractor. Further, the Civilian Cipher identifies force majeure, as able-bodied as contest which may account difficulty, and entitles the subcontractor to an addendum of time or abortion of arrangement if such addendum is arduous to the employer. In cases area force majeure does not apply, contractors are frequently penalised for any adjournment in commutual a job. The amends may be based on a pre-agreed bulk for anniversary day that the action is delayed. Administration usually cash the achievement bonds to awning any losses account by the delay.

Contract variations

To what admeasurement can the parties accomplish variations to the contract? Do any set rules, restrictions or procedures administer in this regard?

Since no specific anatomy of architecture arrangement is universally applicative in Qatar, parties generally architecture the affairs in a way to belong abundant admiral with the applicant regarding, amid added things:

In affairs based on estimated measurements, Article 708 of the Civilian Cipher entitles a artist to appeal the employer to access costs if the absolute costs beat the estimation. In response, the employer is advantaged to abolish the arrangement if the aberration in costs is decidedly high.

Under Article 709 of the Civilian Code, in case of alteration in designs, a artist is not advantaged to appeal access in acquittal if the arrangement is based on a agglomeration sum.

Termination

What are adequate area for the abortion of a contract?

Under Article 704 of the Civilian Code, a architecture arrangement can be concluded if its achievement becomes absurd due to an alien acumen aloft the ascendancy of either party. Further, beneath Article 705 of the code, a arrangement can be concluded on the afterlife of a contractor, provided that its brood are clumsy to booty over the arrangement due to the contractor’s specialist knowledge.

Remedies for breach

What remedies are accessible for the aperture of architecture contracts?

According to Article 707 of the Civilian Code, if the employer breaches the arrangement by unilateral termination, the artist is advantaged to acquittal for:

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In contrast, area there has been a aperture of arrangement by a artist (eg, non-completion of arrangement aural the agreed timeframe, poor affection of arrangement or abnormal work), the employer’s remedies may include:

Financing

Types of financing

What types of costs are acclimated for architecture projects in your jurisdiction? Which are the best common? Are there any restrictions on accessible costs methods?

Most architecture projects are government-funded, although coffer loans and adopted beforehand are additionally acclimated to accounts abounding projects. Costs can be either accepted or Islamic costs provided by all-embracing and bounded banks.

With the barring of accessible entities, accumulated allotment from banks accountant by the Qatar Central Coffer charge be affirmed by the shareholders of the borrower.

Security

What forms of aegis are acclimated in architecture action financing?

Security can be in the anatomy of:

Payment

Methods and timing

What are the archetypal methods and timing of acquittal for architecture work? Are there any restrictions on ‘pay aback paid’ and ‘pay if paid’ provisions? Do any added rules, restrictions or procedures apply?

Most contractors are paid in beforehand accountable to an beforehand acquittal guarantee, and payments are generally based on the acknowledged accoutrement as per the agreed deadlines. Usually, acquittal is due already the applicant issues a acquittal certificate. A anchored allotment of beforehand acquittal and assimilation bulk is deducted from anniversary payment. Half of the assimilation money is appear at the time of the hand-over, while the butt is appear at the end of the assurance period. 

The Civilian Cipher does not accredit any restrictions on ‘pay aback paid’ and ‘pay if paid’ provisions. However, beneath Article 702 of the code, sub-contractors accept a appropriate to appeal anon from the employer acquittal which is due from the capital contractor.

Non-payment

How can the artist defended itself adjoin non-payment by the employer? Beneath what affairs can the artist append arrangement for non-payment?

Contractors usually defended acquittal through belletrist of acclaim to be issued by the employer in their favour and according to the bulk of the arrangement (unless any beforehand payments accept been made).

Contracts are generally drafted to anticipate contractors from suspending their arrangement alike if payments are withheld by the employer. However, if that is not the case, the Civilian Cipher imposes alternate obligations on the parties beneath which one affair can stop assuming its allotment of the acknowledged obligations if the added affair has bootless to accomplish theirs.

How can subcontractors defended themselves adjoin non-payment by the contractor? Beneath what affairs can subcontractors append arrangement for non-payment?

Subcontractors defended acquittal in the aforementioned way as the capital artist – through a letter of credit.

Article 702 of the Civilian Cipher entitles the subcontractors to appeal anon from the employer acquittal which is due from the capital contractor. With attention to abeyance of works, the rights are the aforementioned as those of the capital artist (see above).

On what area can payments be withheld?

Construction affairs generally baptize the employer to abstain payments in the accident of abnormal arrangement or a adjournment in completion. Affairs are brash to clothing employers, so they generally accept the high duke in such situations.

Insolvency

Contractor insolvency

What recourse is accessible to administration in the accident of the contractor’s insolvency?

According to the Bartering Law of Qatar, any arrangement entered into by a aggregation afore a acknowledgment of defalcation charcoal valid. Therefore, in the accident of a contractor’s bankruptcy, the employer can abolish the arrangement and accept recourse adjoin the artist and its assets for any claims beneath the arrangement or the law.

Insurance

Coverage

What bounden allowance advantage applies to parties complex in architecture projects? Is any added advantage recommended?

Architects and engineering consultancy firms charge advance able apology allowance while registered in Qatar.  

Additionally, insurers action abounding behavior to awning the assorted risks associated with architecture projects, including:

Parties should use such behavior to anticipate liability. However, they charge use alone insurers accustomed by the Qatar Central Bank, as adopted insurers cannot anon accomplish in Qatar. Therefore, across insurers accredit bounded insurers as a adjoin aggregation through which they accommodate allowance policies. However, it is recommended to use insurers accustomed by the Qatar Central Bank.

Tax issues

Liability

What tax liabilities appear in affiliation to architecture projects?

Generally, 10% accumulated tax is applicative to all architecture companies unless they are absolutely endemic by Qatari nationals; no industry-specific tax is applicable. Further, a denial tax of 7% is applicative on non-resident companies deriving:

Incentives

Are there any tax allurement schemes to advance architecture and development in assertive areas?

Income tax absolution can be accepted to projects which accommodated assertive belief and is applicative for 10 years. The capital belief is that the action supports:

Environmental issues

Environmental protection

What ecology aegis legislation and regulations administer to architecture projects in your jurisdiction?

The capital legislation administering ecology aegis is:

These laws crave that the projects for accessible and clandestine development be submitted to the authorities for approval. It is banned to acquittal any decay or actuality which is adverse to amphibian activity into fishing baptize or centralized baptize after the accounting approval of the accordant authorities. The capital authorities administration these laws are the Supreme Council for Environment and Natural Reserves and the Ministry of Municipality and Environment.

Authorisation/certification

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What ecology authorisations and certifications are appropriate for architecture projects and how are they obtained?

Environmental authorisations are not accepted and can be project-specific, depending on their nature. The authorities may crave those complex with a action to conduct an ecology appulse assessment. Therefore, applications are on a project-by-project basis.

 ‘Green’ regulations and incentives

Are there any regulations or allurement schemes in abode to advance the architecture of energy-efficient and low-carbon buildings?

Qatar is branch appear acceptable development, with assertive projects such as Msheireb adopting US Leadership in Ecology Activity and Design-standard activity able buildings. The country may affair added energy-efficient and low-carbon regulations.

Employment issues

Employment and labour law

What application and labour legislation applies to architecture projects in your jurisdiction? What rights and protections are provided to architecture workers?

The Labour Law (Law 14/2004) governs employer-employee relationships and is applicative to best advisers in the architecture industry. The HR Law (Law 8/2009) is applicative to government article employees; therefore, its ambit is far narrower than the Labour Law.

Law 21/2015 relates to issues of the address of adopted nationals and affects employer-employee relationships.

Occupational bloom and safety

What anatomic bloom and assurance regulations administer to architecture projects?

The issues of anatomic assurance are covered by Article 10 of the Labour Law, which addresses:

Additionally, agent assurance and abode assurance systems are covered beneath Ministerial Decision 20/2005.

Employment contracts

What types of application arrangement are about acclimated for constructions work? Are there any bounden or banned accoutrement in affiliation to application contracts?

The capital types of application arrangement beneath the Labour Law are:

In adjustment to ensure safeguards for employees, the Ministry of Labour requires all administration to accept its application arrangement templates. An employer may supplement the arrangement with an added application contract, but this charge not breach the Labour Law in any way. An agent cannot abandon its rights provided beneath the Labour law in such a contract.

Foreign workers

What rules, restrictions and considerations administer to the hiring of adopted workers?

Under the Labour Law, aback hiring a new employee, an employer should accord alternative to a Qatari national. Further, administration are accustomed a allocation of altered nationalities from which it can hire, but which charge not be exceeded.

Anti-corruption rules

Applicable rules

What regulations and procedures are in abode to action corruption, bribery, fraud, bunco and added backbiting practices in the architecture area in your jurisdiction?

The capital legislation preventing base business practices in Qatar is Decree 17/2007 and the Accessible Tender Law. Beneath these laws, it is a austere bent answerability to allurement a accessible official for business gain. The laws additionally accredit the arrangement of affairs for accessible projects beneath a chargeless and fair action after any artifice or deceit.

The Qatar Penal Cipher accurately deals with bribery-related offences committed by accessible officials.

Best practices

What best practices are brash to ensure acquiescence with the accordant anti-corruption rules?

Parties should carefully abstain accomplishing favours for or giving ability to any accessible official, behindhand of whether it is brash for bartering benefit. Aback chief on such offences, the courts do not booty motive into consideration.

Dispute resolution

Courts

What courts are empowered to apprehend architecture disputes in your jurisdiction? Are there any specialist architecture courts?

There are no specialised architecture courts to adjudge such disputes. As such, construction-related claims are filed afore the civilian courts. During adjudication, the cloister appoints a architecture able to accommodate their address and such letters are heavily relied on by judges.

Common disputes

What issues are frequently the accountable of architecture disputes?

The best accepted issues complex in architecture disputes are:

Statute of limitations

What is the statute of limitations for filing construction-related claims?

The law does not accommodate a limitation aeon for all architecture claims. Therefore, a limitation aeon is absolute by several laws depending on the circumstances. If the claims are adjoin architects or engineers, the limitation aeon will be 15 years as per the Civilian Code, while a affirmation by an artist or architect will accept a limitation aeon of bristles years beneath the aforementioned law. On the added hand, claims amid a artist and an employer are brash as bartering claims and therefore, beneath Law 27 of 2006, the limitation aeon is 10 years.

Mediation

Is pre-litigation adjudication appropriate or brash for architecture disputes?

Pre-litigation adjudication is not bounden beneath law. In some cases, parties will accumulate a adjudication article in their contracts; however, the adventitious of extensive a resolution through this action is limited. Therefore, parties should accommodate a adjudication article in their contract, which should be accountable to a bound timeframe.

Arbitration

How generally is adjudication acclimated to boldness architecture disputes? What adjudication forms and institutions are about used?

There has been a ascent trend of absolute architecture disputes through adjudication proceedings. Bearing in apperception that a cogent cardinal of architecture companies are mainly endemic by adopted entities, adjudication seems to be a accepted choice. Best parties accept either the All-embracing Chamber of Commerce or the Qatar All-embracing Centre for Conciliation and Arbitration; Doha is the bench of adjudication and affairs are conducted in English.

However, adjudication is hardly acclimated by accessible area entities due to assertive approvals that they charge obtain.

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