Resolution No. 232 (3/24) on FIDIC Contracts
In the Name of Allah, the Entirely Merciful, the Especially Merciful
All praise is due to Allah, Lord of the worlds, may the blessings and peace of Allah be upon our master Muhammad, the seal of prophets, on his family, and all his companions
Resolution No. 232 (3/24)
(The International Federation of Consulting Engineers’ Contracts Templates)
The Council of the International Islamic Fiqh Academy of the Organization of Islamic Cooperation, held in its twenty-fourth session in Dubai (United Arab Emirates) on 7–9 Rabi’ al-Awal 1440, corresponding to 4-6 November 2019,
Having reviewed the research papers submitted to the Academy on the subject of FIDIC Contracts.
Having listened to the extensive discussions on the subject,
Resolves the following
FIDIC contracts are a set of engineering construction contracts templates designed to regulate the relationship between the employer or his representative, and those who execute this contract, to achieve a project with multiple construction elements, to be delivered ready-for-use, as envisioned.
If Shariah rulings and regulations have been complied, the Academy considers these contracts permissible based on an analogy with the contracts of Istisna (i.e. manufacturing), Ijara (i.e. 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 the penalty clause, by virtue of the Academy resolution no. 109 (3/12).
The price increasing due to a change in execution circumstances, or to a modification in the project of the contract, shall constitute compensation for the losses.
Allah Knows Best