Article 477 of the Saudi Civil Transactions Law
المادة 477 من نظام المعاملات المدنية · الفرع الخامس: انتهاء عقد المقاولة
The article provides that a contractor who started performance and then was unable to complete it for a reason beyond the contractor's control is entitled to the value of what was done and what was spent on the rest to the extent of its benefit to the client.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا بدأ المقاول في التنفيذ ثم أصبح عاجزًا عن إتمامه لسبب لا يد له فيه؛ فإنه يستحق قيمة ما تم من الأعمال، وما أنفق في العمل الذي لم يتم بقدر ما عاد على صاحب العمل من نفع.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 477 explained in plain English
This article deals with the case of the contractor being unable to complete the work after starting it, on two conditions:
- The contractor must have started performance.
- The inability to complete must be for a reason beyond the contractor's control.
If both conditions are met, the contractor is entitled to two things:
- The value of the work done.
- What the contractor spent on the unfinished work, but to the extent of the benefit to the client; the contractor does not get everything spent, only to the extent of the benefit the client obtained.
The article balances the two parties: the contractor does not lose the value of what was done as long as the inability is not attributable to the contractor, and the client pays only for what was done and for expenses that benefited the client.
This case differs from what Article 476 regulates, as that article allows requesting termination for a supervening excuse with compensation to the other party. It is followed by Article 478, which applies a similar rule on the death of the contractor, giving the heirs the value of what was done and what was spent on the unfinished work to the extent of the benefit to the client.
If the inability is for a reason attributable to the contractor, that falls outside the scope of this article. To assess the value of the completed work and the benefit obtained, it is advisable to consult a lawyer specializing in civil matters or in contracting and real estate cases.
Practical example
A contractor in Hail began building a warehouse for a merchant, and then a competent authority issued a decision stopping him from continuing the work for a reason beyond his control. The contractor is entitled to the value of the work he completed, and to what he spent on the part that was not completed to the extent of the benefit to the merchant, such as materials delivered to the site that the merchant benefited from.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 477 of the Saudi Civil Transactions Law
What is a contractor entitled to if unable to finish the work for a reason beyond the contractor's control?
The contractor is entitled to the value of the work done, and what was spent on the unfinished work to the extent of the benefit to the client.
Does the contractor recover everything spent on the unfinished part?
No, only to the extent of the benefit to the client.
Does this article apply if the inability is due to the contractor?
The article requires that the inability be for a reason beyond the contractor's control.
More articles on Contracting (Construction) Contract
- Article 167
The article regulates performance of an obligation to perform work: the creditor's right to refuse performance by anyone but the debtor, performance at the debtor's expense with or without court permission when urgent, and a judgment standing in for the work.
إذا كان الالتزام بعمل فتسري على تنفيذه الأحكام الآتية: أ- إذا نص الاتفاق أو اقتضت طبيعة العمل أن ينفذ المدين الالتزام بنفسه جاز للدائن أن يرفض الوفاء من غير الم
- Article 461
The article defines the contracting (muqawala) contract as one in which the contractor undertakes to make a thing or perform work for a fee, without being subordinate to or an agent of the client.
المقاولة عقدٌ يلتزم بمقتضاه المقاول بصنع شيءٍ أو أداء عملٍ مقابل أجر دون أن يكون تابعًا لصاحب العمل ولا نائبًا عنه.
- Article 462
The article allows the contractor to carry out the work with materials supplied by the contractor or with materials supplied by the client.
يصح أن يكون التزام المقاول بتنفيذ العمل بمواد من عنده أو من صاحب العمل.
- Article 463
The article sets the contractor's obligations on materials: if the contractor supplies them, they must meet the specifications or be fit for the purpose by custom; if the client supplies them, the contractor must safeguard them, observe technical rules and return what is left.
1- إذا اشترط صاحب العمل أن يقدم المقاول المواد كلها أو بعضها؛ كان المقاول مسؤولًا عن توفر الشروط والمواصفات المتفق عليها إن وجدت، وإلا التزم بأن تكون وافيةً بال
- Article 464
The article puts the expenses of the machines and tools needed to complete the work on the contractor, unless the parties agree otherwise.
يتحمَّل المقاول نفقات ما يستلزمه إنجاز العمل من آلات وأدوات، ما لم يتفق على خلاف ذلك.
- Article 465
The article requires the contractor to complete the work according to the contract terms and within the agreed period, failing which according to the recognized standards and within the reasonable time the nature of the work requires.
يلتزم المقاول بإنجاز العمل وفقًا لشروط العقد وفي المدة المتفق عليها، فإن لم تكن هناك شروطٌ أو لم يُتفق على مدةٍ التزم بإنجازه وفقًا للأصول المتعارف عليها وفي ال
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.