Fatwa: Stipulation of Appointing a Consultant From Istisna' Requester Part

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1. Fatwa Database https ://islamicmarkets.com/publications Topic: Stipulation of Appointing a Consultant From Istisna' Requester Part Question: Sometimes the customer agrees with a consultant, in Istisna' contracts with a bank, to supervise construction of the building which the customer requested the bank to sell to him. The consultant is to design and follow-up supervision of the building execution on behalf of the customer, provided that he pays the consultant charges. In certain cases, the customer asks the bank to agree with the consultant and pays its charges in return of follow up of execution, is it permissible in such case that the customer agrees with the consultant to be its agent in the follow up of execution in accordance with specifications, in return of bearing its charges? Answer: Shariah Board studied whether it is permissible for the customer to agree with the consultant to supervise construction of the building which is constructed by the bank for the customer and sell it to him on deferred sale basis. Since government regulations stipulate the necessity for a consultant to supervise construction and to ensure conformity of drawings, plans and technical specifications and that the consultant is paid a specific charge agreed upon between the two parties for its work as per a signed contract, Shariah Board see no objection for agreement between the customer and the consultant and that the customer bears its charges. The bank may agree with the consultant and adds its charges to the building costs. However, it is preferred that the bank and the customer agree to select the consultant before signature of the contract. Compiled & Classified By: Dr Ahmed Mohieddin Ahmed Source: Reviewed by: Dr Abdul Sattar Abu Ghuddah Shariah Board Fatwas of Dubai Islamic Bank, Fatwa No. 69.