War in Iran & Rising Fuel Costs: Impact on Construction Contracts (GCC 2015)
URGENT NOTICE: Contractors working under GCC 2015 contracts may be entitled to claim additional costs arising from the war in Iran and resultant fuel price increases. Time-sensitive notification requirements apply.
Key Points:
The war between USA/Israel and Iran qualifies as an excepted risk event under Clause 8.3.1.1 of the GCC 2015, potentially entitling contractors to claim for delays and proven additional costs, including fuel price increases.
⚠️ CRITICAL DEADLINE: Notification must be submitted within 14 days of 31 March 2026 (fuel increase announcement date).
Due date: 15 April 2026 or 17 April 2026 (depending on contract terms)
What You Need to Know:
- Contractors must notify under Clauses 10.1, 8.3.2, 9.1.1 and 9.1.4
- Burden of proof lies with the contractor to demonstrate direct link to the war
- Only proven additional costs not covered by CPAF are claimable
- Claims may require monthly updates for ongoing cost impacts
Download Full Legal Advisory
Expert analysis by Theunis van Zyl
Independent Arbitrator, Adjudicator & Construction Claims Expert
Disclaimer: This article does not constitute legal advice. Every contract should be considered on its own merits. Members are advised to consult with legal professionals regarding their specific circumstances.
For questions or assistance, contact SAFEC
www.safcec.org.za
