Concept and Application of Shariah for the Construction Industry

Shariah Compliance in Construction Contracts, Project Finance and Risk Management

The application of Shariah compliance in business transactions continues to increase. The Asian financial crisis of 1997, global financial crisis of 2007–2008, Enron scandal and other reported ills besieging conventional business transactions have led to advocates of Shariah-compliant business transactions promoting the latter as a credible alternative. However, unlike the banking, commerce and financial sectors, the uptake by the construction sector was sluggish due to limited understanding of Shariah among the practitioners and policymakers compounded by the lack of research and publications on its application for the construction sector.

This book is intended for students, researchers, practitioners and policymakers of the construction industry as well as the related upstream and downstream activities. It offers basic theories, challenges current practices, and proposes innovative ideas on Shariah compliance and its application for the construction industry.

Contents:

• Acknowledgments

• About the Editors

• Contributors' Biographies

• Preface

• List of Tables

• List of Figures

• List of Text Boxes

• List of Appendices

• List of Abbreviations

• List of Surahs (Chapters) in the Quran

• Shariah:

  • Shariah and Its Meaning in Islam (M Kamal Hassan)
  • Understanding of the Shariah in Regards to Construction (Mohamad Akram Laldin)
  • Promoting Efficiency in Construction Practices: Lessons from Shariah (Ainul Jaria Maidin)
  • Shariah-Compliant Construction Marketing: Development of a New Theory (Khairuddin Abdul Rashid and Christopher Nigel Preece)

• Shariah-Complaint Construction Contract: Concept and Application:

  • Shariah-Compliant Contract: Concept and Application for Construction Works (Khairuddin Abdul Rashid)
  • Istisna' Model for Construction Works' Contracts (Khairuddin Abdul Rashid)
  • Validity of Istisna' for Construction Works Contracts (Khairuddin Abdul Rashid)
  • The Application of Limited Liability in Construction Contracts from the Malaysian Law and Shariah Perspectives (Zuhairah Ariff Abdul Ghadas)
  • The Application of Shariah Principles of ADR in the Malaysian Construction Industry (Zuhairah Ariff Abdul Ghadas, Rozina Mohd Zafian and Abdul Majid Tahir Mohamed)

• Shariah-Compliant Project Finance and Risk Management:

  • The Three Rs in Islamic Project Finance: Its Relevance Under Maqasid al-Shariah (Etsuaki Yoshida)
  • Islamic Home Financing Through Musharakah Mutanaqisah: A Crowdfunding Model (Ahamed Kameel Mydin Meera)
  • Proposed Model on the Provision of Affordable Housing via Collaboration Between Wakaf-Zakat-Private Developer (Khairuddin Abdul Rashid, Sharina Farihah Hasan and Azila Ahmad Sarkawi)
  • Shariah-Compliant Risk-Sharing in Islamic Contracts (Masamitsu Onishi and Kiyoshi Kobayashi )
  • Takaful for Construction Works' Contract: Concept and Application (Puteri Nur Farah Naadia Mohd Fauzi and Khairuddin Abdul Rashid)
  • Hibah Mu'Allaqah (Conditional Gift) and Its Application in Takaful (Azman Mohd Noor)
  • Managing the Risk of Insolvency in the Construction Industry with Equity Financing: Lessons from Nakheel (Abdul Karim Abdullah)

• Index

Readership: This book is intended for postgraduate students, researchers, policy makers, practitioners related to construction such as clients, quantity surveyors, architects, engineers, planners, project and construction managers, construction law experts, banking & financial experts.
Key Features:

• Shariah in construction projects. There exist books on Shariah in general business transactions and construction projects/contracting in conventional world, but no book covers both
• Shariah in international community. Shariah has been discussed among the Muslim community, but this book involves non-Muslim academics and practitioners. This implies the knowledge here is written commonly understandable for both Muslims and non-Muslims
• Shariah in interdisciplinary context. Shariah has been discussed by Shariah lawyers from the religious and legal aspects. On the contrary, this book involves experts from different disciplines such as construction management and business, financiers and economics. Interdisciplinarity is a unique feature of this book