Bahrain’s New Building Law: What is changing?
Real Estate / Bahrain
Bahrain’s legislator is in the process of revising its law on the regulation of buildings, which has been in place since 1977.
Law Update: Issue 368 - Technology, Media & Telecoms Focus
Fatema SarhanSenior Associate,Dispute Resolution
Ehsan AhmedAssociate,Dispute Resolution
Reem AltaraifTrainee Associate, Dispute Resolution
Bahrain’s legislator is in the process of revising its law on the regulation of buildings, which has been in place since 1977. The draft law, which was recently shared with some stakeholders, aims to introduce several changes to the current legal framework, affecting various aspects of the construction sector. This article will discuss the main features of the draft law and how they differ from the existing law, as well as some suggestions for further improvement.
One of the key changes proposed by the draft law is the expansion of the rights of investigation granted to the municipalities, which are responsible for issuing and enforcing licenses for construction projects and building works. Under the current law, the municipalities have the authority to inspect buildings and to revoke licenses in case of violations
as well as the right to rectify at the owner’s expense said violations. The draft law adds the right to appoint external experts to assist in the investigation, examine witnesses, demand clarifications, and receive responses from the parties involved in the construction process, as well as the right to request additional reports and certificates from the engineering offices and building contractors. These additional rights are intended to enhance the efficiency and transparency of the municipal oversight and to ensure compliance with the technical and regulatory standards.
Another significant change introduced by the draft law is the imposition of obligations upon the building contractor and the engineering office to keep the municipality updated on various aspects of the project. Under the draft law, both the contractor and the engineer are required to notify the municipality of their appointment, any minor works that do not require a new license, any violations of the building permit, identity of the building supervisor who is responsible for overseeing the execution of the construction works according to the approved engineering designs, and the termination of their relationship with the project.
The draft law also clarifies that the liability for violations falls on both the contractor and the engineer, unless they can prove that they were unaware of the violation or that they notified the municipality of it. These obligations are meant to ensure accountability and responsibility of the parties involved in the construction process and to facilitate the municipal supervision and enforcement.
A third change proposed by the draft law is the introduction of the municipality’s right to request further tests reports and certificates from the engineering offices and building contractors as a prerequisite for granting or renewing building permits.
Under the current version of the law, the owner of a property is only required – in certain classes of properties - to provide the municipality with a soil investigation report.
The draft law does not however specify the content and or the cases in which such reports and tests, but leaves it to the discretion of the municipality, depending on the nature and complexity of the project. The purpose of this right is to allow for flexibility and adaptability in the licensing and inspection process, as well as to verify the quality and safety of the construction works.
Another change introduced by the draft law is the increase of the punishment for violations of the law and the regulations issued under it. The draft law provides for administrative and criminal sanctions, depending on the type and severity of the violation. The administrative sanctions include written undertakings to stop the violation, limitations or conditions on the license, suspension of work, orders for demolition or repair, complete or partial demolition, and fines ranging from BHD 500 to BHD 50,000, which represent a steep rise in sanctions available under the current law.
The criminal sanctions currently available include imprisonment for 10 days to 3 years, and fines between BHD 1,000 and BHD 20,000. The draft law maintains these sanctions, but adds the possibility of executing the necessary work at the owner's expense, in case of non-compliance with the administrative orders. The draft law also increases the fines for criminal offenses, ranging from BHD 2,000 to BHD 40,000 for individuals, and from BHD 4,000 to BHD 80,000 for legal persons (corporate entities). These increases are intended to deter violations and to reflect the inflation and the value of the property.
A significant change proposed by the draft law is the establishment of a separate criminal liability for legal persons, in addition to the individual liability of their representatives or employees, which is not available under the current law.
The draft law clarifies that legal persons can be held criminally liable for the offenses committed by their representatives or employees, in the course of their work or on their behalf, unless they can prove that they took all the necessary measures to prevent the offense. These provisions are meant to ensure accountability and responsibility of the legal persons involved in the construction sector, and to align with the international standards and best practices.
The draft law, as it stands, represents a significant reform of the legal framework governing the regulation of buildings in Bahrain, and introduces several changes that aim to improve the efficiency, transparency, fairness, quality, safety, and accessibility of the construction sector.
A seventh and final change introduced by the draft law is the clarification of the right to appeal the decisions of the municipality regarding the violations and the sanctions. The current law outlines the process for appealing the municipality's decisions, which includes filing a grievance within 60 days of the decision, receiving a decision on the grievance within 60 days of filing, and filing a court appeal within 60 days from the grievance decision. The draft law maintains this process, but adds the requirement of paying the fine or providing a guarantee before filing the court appeal, unless the court decides otherwise. The draft law also clarifies that the appeal does not suspend the execution of the decision, unless the court decides otherwise. These clarifications are intended to streamline the appeal process and to avoid unnecessary delays and complications.
The draft law, as it stands, represents a significant reform of the legal framework governing the regulation of buildings in Bahrain, and introduces several changes that aim to improve the efficiency, transparency, fairness, quality, safety, and accessibility of the construction sector. However, the draft law could also benefit from some further amendments, such as codifying some of the recent principles and trends discussed in the courts, such as back-to-back payment clauses, and clauses relating to adjudication and mediation before arbitration. These amendments could enhance the legal certainty and predictability of the construction contracts and disputes, and encourage investment and development in the sector.
For further information,please contact Fatema Sarhan, Ehsan Ahmed and Reem Altaraif.
Published in May 2024
