Construction companies bidding for work in Qatar over the past five years have had to assess a multitude of risks. They say contract conditions are one-sided, project owners are reluctant to entertain any claims, the supply chain is inelastic, and as construction activity builds up ahead of the 2022 World Cup, inflation is an ever-present concern.

After diplomatic ties were severed and transport links closed by Saudi Arabia, the UAE, Bahrain and Egypt on 5 June, a new dimension has opened up and firms are asking themselves whether they should also be considering political risk when it comes to bidding for new work in Qatar.

If the blockade lasts, then schemes that are dependent on deliveries by truck from Saudi Arabia will be delayed, and as a result there is expected to be a spate of litigation as contractors use force majeure clauses to avoid penalties incurred for the delays.

Just one day after Saudi Arabia closed the border, contractors already say they are facing delays as trucks heading for Qatar with vital materials and equipment will not be able to complete their deliveries.

The problem for contractors is that pricing in political risk is not an option. Firms working in the region are already working with razor-thin margins that afford no room for pricing in extra risk. This means they either have to accept the political risks, or walk away from a market that despite the recent turmoil is still preparing to issue tenders for major schemes such as Katara Hospitality’s $500m twin-tower hotel scheme and the $1bn-plus extension to the Doha Metro’s Green Line. With the region issuing few major tenders in 2017, these opportunities are difficult to turn down.

Contractors that are optimistic will continue to bid for work as they say the blockade is only temporary and normality will return to the market soon. Those that are pessimistic and expect a long drawn-out political crisis will refrain from bidding and look to pull out of the market.

Those that are realists face a conundrum as there is no room to price the risk accordingly.