Proposal for a "Certified Contract" by the Municipality to Safeguard the Rights of Landlords and Contractors

Member of the Municipal Council, Engineer Abdul Latif Al-Duai, submitted a proposal concerning the issuance of standardized contract templates approved by the municipality, to be used between property owners and contractors for private residential construction and demolition projects, with the aim of safeguarding the rights of both parties. He emphasized that “private residential construction and demolition projects have witnessed numerous disputes between owners and contractors due to the poor quality of contracts.”

In his proposal, Al-Duai stressed the necessity of issuing municipality-approved contract templates that include mandatory essential clauses to protect the rights of both parties (scope of work, timeline, payment installments, warranty, delays and penalties, dispute resolution mechanism, insurance, and subcontractors), while allowing for the addition of mutually agreed special clauses and conditions, without compromising the approved essential clauses.

He stated that the proposal also requires the submission of a signed copy of the contract (according to the approved template, along with any added clauses) prior to the commencement of work. He further called for coordination with the Ministry of Justice and relevant engineering authorities to review the template from legal and technical perspectives before its approval, ensuring that the approved contract is binding on all parties and enforceable by both the municipality and the judiciary.

He highlighted the importance of granting the approved contract, when used, priority and legal evidentiary weight in the event of a dispute between the parties, as it serves as the officially recognized reference by the municipality and judicial authorities, thereby providing stronger evidentiary value than customary, unapproved contracts.