The escalation of the US Israel Iran conflict since late February 2026 has disrupted regional airspace, logistics corridors and insurance markets, and has raised immediate questions about the safety and mobility of construction labour in and out of the UAE. Although the UAE remains operational, these developments are already affecting supply chains, delivery routes and project risk profiles across the Emirates.
For construction parties operating under the FIDIC 1999 Red Book (the dominant standard form in the UAE) these events raise three urgent questions: when may force majeure be invoked, how must the workforce be protected, and what steps must parties take right now to avoid losing their entitlements?
Force Majeure Under the FIDIC Red Book
Sub‑Clause 19.1 of the FIDIC 1999 Red Book defines “Force Majeure” as an exceptional event which is (i) beyond a party’s control, (ii) unforeseeable before contract, (iii) unavoidable; and (iv) not attributable to the other party. It then lists, as examples, “war, hostilities (whether war be declared or not), invasion, act of foreign enemies” and related events, together with terrorism and certain types of civil commotion and natural catastrophe.
In the present context, active hostilities in Iran, threats to shipping lanes, partial airspace closures and heightened terrorism alerts are all capable of falling within the enumerated examples, provided the four core conditions are also satisfied.
The critical legal and factual issue is not whether there is a war in the region in the abstract, but whether specific project obligations in the UAE have become impossible (or at least prevented or seriously hindered) by concrete effects of that war, such as grounded flights, embargoed routes or lawful government closures.
Where the Contractor is prevented from performing obligations by an event that qualifies as Force Majeure, the following critical deadlines have to be strictly complied with:
| Clause | Deadline | Obligation |
| 19.2 | 14 days from awareness | Notice of Force Majeure – identifies the event and the specific obligations prevented. Late or absent notice risks forfeiture of entitlement entirely |
| 20.1 | 28 days from awareness | Notice of Claim – formally preserves entitlement to EOT and Cost. Failure is FATAL: the Employer is discharged from all liability. No exceptions. |
| 20.1 | 42 days from awareness | Fully detailed particulars of the claim submitted. If the impact is ongoing, monthly updates must follow |
| 19.6 | 84 / 140 days from Notice of Force Majeure | Either party may terminate if substantially all Works remain prevented for 84 consecutive days or 140 days for multiple periods. |
The UAE Law Dimension: Force Majeure vs. Hardship
The Red Book’s contractual regime operates alongside and is shaped by the UAE statute. Under Article 273 of the UAE Civil Transactions Law (“CTL”), force majeure applies where an event renders performanceimpossible: the corresponding obligation is extinguished and the contract may terminate by operation of law.
Importantly, Article 287 CTL may also shield a party from damages liability where harm is caused entirely by factors outside its control. Potentially a defence against delay damages claims under Sub-Clause 8.7 of the Red Book, provided the causal link is clean and uncontaminated by prior breach.
Not every disruption reaches the threshold of impossibility, however. Where performance remains possible but has become excessively onerous due to exceptional, unforeseeable events, Article 249 CTL (Hardship) allows a court to adjust the contractual obligations to restore fairness. This is relevant where a contractor faces dramatically escalated material or logistics costs but cannot prove outright impossibility. Crucially, any agreement attempting to exclude this judicial power is void.
Two caveats cut across both doctrines. First, courts demand a specific causal link between the event and the precise obligation affected. Therefore, a general plea of regional instability will not suffice.
Second, and equally important, a party already in culpable delay when the conflict arose cannot rely on force majeure to excuse obligations it was already failing to meet. Parties must assess their baseline position honestly before invoking either doctrine.
Workforce Safety: An Obligation That Does Not Pause
Across these contractual and statutory frameworks, one obligation runs continuously and without exception, which is the duty to protect the workforce.
Sub-Clause 6.7 of the Red Book requires the Contractor to take all reasonable precautions to maintain the health and safety of its personnel. This is a duty reinforced by Article 37 of the UAE Labour Law (Federal Decree by Law No. 33 of 2021), which preserves an employer’s liability for medical care and statutory compensation regardless of external events. Where genuine safety risks arise from the conflict, the Contractor has not merely the right but the obligation to suspend or evacuate operations, and Sub-Clause 8.9 of the Red Book provides the Engineer with authority to direct such a suspension, entitling the Contractor to EOT and Cost where the suspension is attributable to force majeure or the Employer’s risk.
Employers must not treat safety as the Contractor’s problem alone. Independent risk assessments, joint safety protocols and formally documented site decisions are essential – both as a matter of legal compliance and as a foundation for managing any subsequent dispute about the timing and justification of any work suspension.
What Parties Must Do Now
Given the strict deadlines above, the time for deliberation has passed. The Employers and Contractors shall follow these steps:
For Contractors
- Map the specific obligations affected. Force Majeure operates at the level of obligations, not projects; identify which activities are affected (e.g., tower crane deliveries, specialist commissioning teams, imported façade materials) and why.
- Issue timely notices under Sub-Clause 19.2 and 20.1 of the Red Book.
- Build a contemporaneous force majeure register: affected activities, dates of impact, mitigation steps taken, alternative routes and suppliers explored.
- Documentall risk assessments, safety protocols and any decisions to suspend or restrict operations. These records serve double duty as a safety record and a claims foundation.
- Notify insurers promptly under all relevant policies (contractor’s all-risk, political risk, third-party liability) because missed notification deadlines can defeat coverage independently of the merits.
For Employers
- Do not await the Contractor’s notice passively. Conduct an independent assessment of affected activities and document the Engineer’s contemporaneous view of programme status.
- Scrutinise incoming notices: Was the event genuinely unforeseeable? Was the Contractor already in delay? Is there a direct causal link to the specific obligation, or a generic plea of disruption?
- Direct the Engineer to maintain independent site diaries, progress records and updated programmes throughout this period because these will be indispensable if a dispute follows.
- Review business interruption, war risk and political risk insurance policies and notify insurers promptly of potential claims.
- Participate in joint safety assessments with the Contractor and formally record all site safety decisions made during this period.
Conclusion
- The current US‑Israel‑Iran conflict can, in appropriate factual circumstances, constitute Force Majeure under FIDIC Clause 19 and under Article 273, but each claim will turn on project‑specific evidence of impossibility or prevention.
- Many disruptions will fall short of impossibility and be treated instead as hardship (Article 249) or as contractually assumed risk; parties should not assume that “war in the region” automatically relieves them of obligations.
- Worker health and safety obligations remain fully operative and may require suspensions or evacuations, which should be carefully documented and, where possible, channelled through the contractual suspension mechanisms.
- Rights will be won or lost on strict compliance with notice and claim procedures, on the quality of contemporaneous records, and on credible mitigation efforts.
Seek Legal Counsel
For further information, please contact Rabih Tabbara, Partner, Head of Construction & Infrastructure Disputes, on Rabih.Tabbara@habibalmulla.com.
Disclaimer
The content provided in this article is intended for informational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy and completeness of this information, the article does not offer a guarantee or warranty regarding its content. The matters discussed in this article are subject to interpretation, and legal outcomes may vary based on specific facts and circumstances. We recommend that readers seek individual legal counsel before making any decisions based on the information provided. If you require specific legal advice, please contact us directly.