Decennial Liability Insurance In The Omani Law

• Published date: 20 February 2023
• Subject Matter: Insurance, Real Estate and Construction, Insurance Laws and Products, Construction & Planning
• Law Firm: Sariya Al Hadi & Ali Al Rashdi & Co.
• Author: Mr Ali Al Rashdi

The Omani Law impose upon contractors and architects/engineers (referred to as "engineers" hereafter) to guarantee the design and construction works they implemented for ten years. The provisions related to the decennial liability insurance determine as a public order as stated in article 636 of the Civile Transaction Law No. 29/2013 which says: "Any clause that exempts the contractor or the engineer from the liability or limits such liability shall be void." As a result, the law prohibits agreeing on exemption or limitation of the decennial liability. Also, it is an assumed responsibility, meaning the employer is not required to prove the fault of the contractor or engineers as long as the total or partial collapse or defect affecting the stability or safety of the building or fixed installation has occurred.

This article will explain the legal articles that governed the decennial liability insurance, the responsible and beneficial parties, and the conditions to implement the decennial liability.

Legislation Relevant to Decennial Liability Insurance

The Omani legislator regulated the decennial liability in two articles, Article 634 of the Civil Transactions Law No. 29 of 2013 promulgated on May 6, 2013, which reads:

"(1) Both the engineer and the contractor shall be jointly liable for a period of ten years for any total or partial collapse of the buildings or other fixed facilities constructed thereby, and for any defect which threatens the stability or safety of the building, unless the contract specifies a longer period. The above shall apply unless the contracting parties intend that such installations should remain in place for a period of less than ten years.

(2) The warranty set forth in the foregoing Article shall include any defects existing in the buildings and facilities, which endanger the safety and endurance of building.

(3) The period of ten years shall commence as from the time of delivery of the work."

Also, the decennial liability is stipulated in the article 22 of the Law on the Regulation of Engineering Consulting Firms No. 27 of 2016 promulgated on May 12, 2016, which reads as follows:

"The licensed designer or supervisor of implementation shall be liable, jointly with the contractor, for any mistakes or defects in the projects designed by him or implemented under his supervision, even if the defect is due to the land on which the project is built or if the employer authorised the establishment of defective enterprises, for a period...