The construction sector constitutes one of the core pillars of the economy and a key driver of modern development, given its central role in delivering projects, developing infrastructure, and stimulating investment. Construction projects typically involve multiple stakeholders, including public authorities, private companies, and individuals, which gives rise to complex legal and commercial relationships. As a result, this sector has received significant legislative and regulatory attention, aimed at ensuring contractual balance and legal certainty.

In light of this importance, the Qatari legislator has carefully regulated construction relationships, starting with the construction contract itself as the legal framework governing the rights and obligations of the parties, and extending to specific provisions applicable to building and construction works. Under Qatari law, a construction contract is defined as a contract pursuant to which one party undertakes to perform works or produce something for the other party in return for remuneration. By its nature, such a contract is governed by the general rules applicable to bilateral contracts, including the principles of pacta sunt servanda, the prohibition of unilateral modification or termination without legal basis, and the obligation to perform contractual obligations in good faith.

Legal complexities arise, however, when the contractor fails to perform the agreed works without lawful justification. In such cases, the law grants the employer alternative legal remedies to address the resulting harm.

The first option is to seek termination (rescission) of the construction contract. Where termination is ordered, the contractual relationship is extinguished retroactively. In this scenario, a key legal consequence arises with respect to compensation. Once the contract is rescinded, it can no longer serve as the legal basis for claiming contractual damages, including liquidated damages or delay penalties. Instead, any claim for compensation must be founded on the rules of tortious liability, which require proof of fault, damage, and a causal link between them.

Alternatively, the legislator has provided the employer with the right to seek performance at the contractor’s expense. In this case, the employer may request judicial authorization to complete the works, either directly or through a third party, at the contractor’s cost. This mechanism constitutes a form of enforcement by substitution while the contract remains valid and effective. Consequently, the employer retains the right to claim contractual damages stipulated under the construction contract, including delay penalties where applicable, without the need to prove actual damage.

In addition, Qatari law recognizes the employer’s statutory right to unilaterally terminate the construction contract pursuant to Article (707) of the Civil Code. Under this provision, the employer may discontinue the works before completion, even in the absence of fault on the part of the contractor, provided that the employer compensates the contractor for expenses incurred, works performed, and the profit that would have been earned had the project been completed. In this case, the contractor’s right to compensation arises directly from the law rather than from contractual breach.

In conclusion, where a contractor breaches its obligations under a construction contract, the employer must carefully select the most appropriate legal route to protect its interests. Whether through termination, performance at the contractor’s expense, or statutory withdrawal from the contract, each option carries distinct legal consequences that must be assessed in light of the specific circumstances of the project and the employer’s strategic objectives

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