What is Q-Construct?
A new adjudication scheme aimed at construction projects in Qatar to offer an alternative model for dealing with construction disputes that often lead to project cost escalation and delays in the execution of construction projects.
Although there has been reliance on arbitration in Qatar, the primary difference between arbitration and adjudication is the person or entity that makes the decision in a legal dispute. In arbitration, the disputing parties agree on an impartial third party—an individual or a group—to hear both sides and resolve the issue. In adjudication, the decision is the responsibility of a judge, magistrate, or other legally-appointed or elected official.
How does it work?
Q-Construct Adjudication Rules will lay down the procedure to be observed and will be contractually binding upon the adjudicating parties. Registrar of the Qatar International Court and Dispute Resolution Center (QICDRC) Christopher Grout elaborates further providing that:
"The Q-Construct scheme will be supported by the Qatar International Court whereby a specialist construction judge will be on hand in the event that judicial authority is required at some point during the dispute resolution process. The decision of the adjudicators will be contractually binding upon the parties and will be enforceable through the Qatar International Court as a State Court. It is envisaged that the appeals process will be extremely limited; a party can either accept the DAB’s decision and comply or serve a notice of disagreement. Even if a party wishes to submit the dispute to further dispute resolution procedures, for example arbitration or litigation, they must in the interim comply with the adjudicator’s decision to ensure that the project continues to run."
In essence, Q-Construct is a fast track adjudication scheme which is intended to deal with disputes that arise within the context of construction projects. The procedure is designed to be simple and streamlined with cases being determined by specialist adjudicators who are registered with the QICDRC.
Modeled after the Technology and Construction Court of the UK which is a specialist court that deals principally with technology and construction disputes, Q-Construct has been designed specifically to deal with construction related disputes in a manner which is both fast and cost effective, allowing construction projects to continue with minimal delay.
Solving arbitration woes
Although the Qatar International Center for Arbitration and Conciliation hears about 40-50 cases a year, enforcing international arbitration awards in Qatar has proven to be problematic even as the New York Convention has been in effect in Qatar since 2003.
Article 192 of Qatar's Procedural Code states that parties whose contract contains an arbitration clause waive their right to have their case resolved in a Qatari court. Article 203 and 204 of the Procedural Code provide that within 15 days of the arbitration award being made it must be filed at the Court of Execution. The winning party must then apply to the court to issue a writ of execution enforcing the award. This however maybe appealed.
With the Q-Construct being a binding adjudicative entity, resolving disputes through an alternative dispute resolution method would (if the draft is passed) be much more effective and expedient.
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