You paid a contractor a large part of the price for your house or project, then the works fell months behind, the contractor walked off site, or cracks and defects appeared after handover. These are among the most common disputes in Oman. This article explains when you can sue a contractor, the steps to take first, what you can claim and when decennial liability applies.
When can you sue a contractor?
- Delay beyond the agreed completion date without a valid excuse.
- Abandoning the works before completion.
- Defective work or work that departs from the drawings and specifications.
- Claims for more than the value of the work actually done.
- Structural defects after handover that threaten the building's stability or safety.
The legal basis
Construction contracts are governed by the Civil Transactions Law issued by Royal Decree 29/2013, together with your contract's terms on duration, penalties, termination and dispute resolution.
Steps before suing
- Read the contract: duration, delay penalties, termination and any arbitration clause.
- Document the site with dated photos and an independent engineer's report.
- Gather proof of payments.
- Send a formal notice of breach with a reasonable period to remedy.
- Do not alter the site before it is documented; an urgent application to record its condition may be needed.
What can you claim?
Completion or repair, termination with recovery of overpayments, compensation for losses such as completion costs or alternative accommodation, and contractual delay penalties, which a court may in some cases adjust to reflect the actual loss.
Decennial liability
The engineer and contractor are jointly liable for ten years for collapse and for defects threatening a building's stability or safety, and this cannot be excluded. The claim must be brought within a limited period, generally three years, after the collapse or discovery of the defect.
Where is the claim heard?
If the contract has an arbitration clause, usually by arbitration; otherwise before the competent court, which may be the Court of Investment and Commerce where the contractor is a trader and the dispute concerns its business. Courts rely heavily on engineering experts.
Frequently asked questions
Can I stop paying a late contractor?
Withholding may be allowed in some cases, but stopping payment without a clear basis can put you in breach. Take advice first.
Can I hire another contractor to finish?
Usually yes, once the first contract is properly ended and the state of the works documented, then claim the extra cost as compensation.
For a dispute with a contractor or project owner, see our construction disputes lawyer service or contact Dr. Abdullah Al Rashdi Office on WhatsApp or +968 92000841.