Reflections on Qatar World Cup 2022 – Whilst the football has gone, the legacy remains.

Almost 12 years on from the bid, an estimated figure of $220 billion has reportedly been spent to date. Whilst there is uncertainty over the final figure, as a large portion of sum was invested by the Qatari government on non-football infrastructure which overlapped with the country’s wider public investment project, such as hotels, international airports, new roads, and metro systems, it is safe to say that the country has broadened its horizons through this once in a lifetime opportunity.

Hosting such a tournament doesn’t come without it’s challenges however and now that the tournament has concluded and we get back to normal in the Premiership, we review some of the achievements, lessons to be learnt and key issues from a construction perspective and how some of these elements may affect the industry, irrespective of the size of the project.  So, let’s kick off…

Let’s keep it clean.

Environmental, Social, and Governance (“ESG”) standards are being placed at the forefront of all agendas, with a heavy focus placed upon the values, morals and respect of the people and the planet. Qatar’s organising committee, made a commitment that the World Cup 2022 would be the first time the tournament will not release a single gram of carbon dioxide into the atmosphere. A huge promise to make and an even bigger challenge to meet. So how has Qatar faired in achieving this?

The Qatari government insist that most of the new stadiums will be re-used for different purposes to demonstrate sustainability now that the World Cup is over. This will include converting existing stadiums into an educational institution, a community centre and most impressively, the complete dismantling and re-utilisation of the 974 stadium, a 40,000-seater stadium built entirely from recycled shipping containers which is envisaged to be rebuilt in Uruguay for the World Cup in 2030.

Whilst this is a pioneering moment in the sporting world, there are still accusations of “window dressing”  and “greenwashing” being directed towards the organising committee and leading researchers at Carbon Market Watch assert that the carbon neutrality claims by Qatar’s organising committee were “misleading and dishonest about the true climate impact that the event will have”, estimating a staggering 6 million tons of CO2 to be emitted into the atmosphere.

Therefore, it isn’t just what you do but also what you prevent which is key to ensuring elements of ESG are satisfied. In reality, ESG is not just for the high rollers anymore and everyone involved within the industry have positive obligations to ensure they are working towards carbon neutrality on all projects, especially domestically, following the UK’s pledge to aim towards being carbon net-zero by 2050.

This is now being set into practice within legal practice and ESG clauses are expected to become uniform within construction contracts in future. The NEC have demonstrated this by publishing a climate change clause that is specifically intended at tackling climate issues in the built environment within their contracts.  Whilst ESG expands beyond sustainability and branches out to the Social and Governance aspects of working, it is certainly something we can expect major reforms on going forward and we will keep you up to date on this as and when any changes are implemented.

Is it a fair game?

Serious concerns continue to be flagged with regards to treatment of migrant workers and insufficiency of adopting health and safety laws in Qatar during the preparation for the World Cup. We set out below some of the key points which have been a contributing factor to the lack of legal challenge being brought against contractors for the health and safety risks faced by workers and how this differs to the approach adopted in the UK.

Difficulties in raising concerns

Workers in Qatar have the option of bringing any infringements of their rights to the attention of the labour authorities and, eventually, the courts. Complaining is perceived as risky business however and not always accessible due to a serious lack of inspectors on site. In contrast, any health and safety issues arising in construction can be actioned by bringing the issue to the attention of the Health and Safety Executive (“HSE”) in the UK, the national independent regulator for health and safety in the workplace who will work closely with local authorities and other regulators to carry out investigations and if necessary, take the necessary enforcement action.

Lack of representation

Workers will require access to travel, ability to speak English or Arabic and some form of representation to bring forth any claims. This involves time and costs, something which isn’t readily available for migrant workers who are pressured by their sponsors.

No centralised legislation

Whilst there is extensive legislation and regulation relating to health and safety of workers in Qatar, all such provisions are set out in varying legislations and regulations. This can cause complications when bringing forth legal proceedings. The UK have adopted a more centralised approach with a single health and safety law, the Health and Safety at Work etc Act 1974  which provides succinct responsibilities to all parties concerned and branching off from this, gives rise to independent safety regulators who can enforce such regulations with relative ease.

Whilst Qatar has made strides to overhaul its labour system and improvements have been made to rights of migrant works as well as general labour laws, there is still a big question mark regarding the effectiveness of implementation and enforcement of those new laws. This will be an ongoing mission and the World Cup is not the finish line. Qatari authorities have committed to working with entities such as the International Labour Organization to support the alignment of their laws and practices with the standards set internationally.

Extra time?

Completion dates in all associated construction projects with the World Cup provide a very rare challenge which one does not often come across in the industry as there is absolutely no option to delay or to extend the deadline. We saw a similar situation in the UK with the 2012 Olympics. Postponement to a global event of such magnitude would be considered a disaster and could cause serious reputational damage to employers, contractors, and the country at large. Therefore, typical provisions found within construction contracts such as liquidated damages and extensions of time are of no use to anyone concerned.

So, what happens if there is a delay? Well apart from bearing the brunt of disgruntled football fans, any claims arising from any construction associated activities will have to be dealt with after the event, in such time when the dust settles, and the champions are crowned. As the sole aim for all stakeholders involved during the construction phase is to ensure that completion is on time, parties to contracts will typically have to increase their expenditure on materials and resources to meet the deadlines which they would expect to claim back later through mutual agreement, dispute resolution or legal proceedings.

It will be interesting to see how many of these types of claims are brought forward now following the conclusion of the event especially for those who enter fixed-price lump-sum contracts.  There will be an inevitable expectation to stick to the fixed price, with an unwillingness to identify rights to compensation for delays caused by variations, late site access potentially due to Covid-19, late or inadequate design, information issues, late payment etc. Essentially, it will ultimately depend on the drafting of the contract documents and in the cases of such disputes, every word will matter.

Full time

As the full-time whistle has now blown on a truly amazing event, it is evident that this World Cup has been about more than ‘just football’. With increased media attention diverted towards health and safety laws, worker rights and ensuring sustainability is prioritised, the industry will soon realise that there is far more scrutiny than ever before to ensure that we are doing the best we can to look after the planet and it’s people. Our Regulatory and Construction experts are on hand to provide advice in respect of your duties relating to sustainability, safety and health in general. We can help you prepare bespoke, strategic contracts and business plans to mitigate these risks.