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Prevention Principle

FIDIC / Legal Reference: General contract law — applicable under UAE and English law

The legal principle that a party cannot take advantage of its own breach or wrongful act to enforce a contractual right against the other party. In construction, the prevention principle most commonly arises where an employer prevents the contractor from completing the Works by the contractual date — and then seeks to apply Delay Damages for the resulting overrun.

What it means in practice

The prevention principle operates as a qualification on the employer’s right to Delay Damages: if the employer’s own actions prevented the contractor from completing on time, the employer cannot rely on the contractual completion date to run Delay Damages — unless the contract’s extension of time mechanism has properly adjusted the Date for Completion.

Under FIDIC, the broad extension of time provisions in Clause 8.4 are designed to ensure that the completion date is adjusted whenever an employer-risk event affects the programme. If the EOT mechanism fails to cover a particular employer-risk event, the prevention principle may be invoked to put Time at Large.

Where disputes arise

Prevention principle arguments are most effective where: the contractor has a strong EOT entitlement that was wrongly refused; the employer’s conduct materially prevented timely completion; and the extension of time mechanism has gaps that fail to cover the employer’s prevention.

UAE Context

UAE-seated arbitrations at DIAC have applied the prevention principle in appropriate cases. UAE Civil Code Article 247 provides a statutory basis for the prevention principle under UAE law.

Related terms

Prevention principle arguments require specialist FIDIC and UAE law expertise. e-Basel provides claims advisory and expert witness support for time at large and prevention disputes.

Construction Claims Consultant UAE →

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