The Civil Transactions Law and the Impact of the Muqawala Provisions on Construction

The Civil Transactions Law (the “Code”), enacted pursuant to Oman Sultani Decree No. 29/2013, and having come into force in Oman on 13 August 2013, is a codification of Omani (and to some degree Egyptian) jurisprudence, as developed over past decades. The Code contains a section on “Muqawala” (a contract to make a thing, or perform a task) which impacts directly on construction activities in Oman and is the focus of this article.

Application of the Code

The Code generally applies as follows:

• The Code is not retrospective. It does not amend or take precedence over existing laws. The Code applies where there is not already an existing specific law.

• Parties cannot “contract out” of these provisions and, therefore, all those operating in the construction industry must comply with the 25 construction-related Articles as set out in the Code.