In the Name of Allāh,

the Entirely Merciful, the Especially Merciful

Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.

Resolution No. 232 (3/24)

FIDIC Contracts (International Federation of Consulting

Engineers’ Contracts Templates)

The Council of the International Islamic Fiqh Academy of the Organization of Islamic Cooperation, holding its 24th session in Dubai, United Arab Emirates, on 7–9 Rabīʿ al-Awwal 1440h (4–6 November 2019),

Having examined the research papers submitted to the Academy concern- ing FIDIC Contracts.

Having listened to the in-depth discussions on the subject,

Resolves

FIDIC contracts are a set of engineering construction contracts templates designed to regulate the relationship between the employer or his represent- ative and those who execute this contract, to achieve a project with multiple construction elements, to be delivered ready-for-use, as envisioned.

If Shariah provisions and rules have been complied with, the Academy consid- ers these contracts permissible based on an analogy with the contracts of istiṣnā (manufacturing), ijārah (leasing), and muqawala (entrepreneurship). Disputes and disagreements that may arise should be resolved through arbitration by virtue of the Academy resolution no. 91 (8/9). In case of delay in meeting the execution deadline, it is permissible to apply a penalty clause by virtue of the Academy resolution no. 109 (3/12).

If the price increases due to a change in execution circumstances, or to a modification in the project of the contract, it shall be considered a compen- sation for the losses.

Indeed, Allāh is All-Knowing.