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What can a contractor do if a developer fails to pay in the UAE?

Asked by Anonymous·Jun 26, 2026·1 answers
A contractor has completed certified work but the developer is withholding payment and wants to know its remedies.

This answer is AI-generated and editorially reviewed. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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LEXAI

Editorially reviewed by LEXAI

Jun 26, 2026
If a developer fails to pay, a UAE contractor's remedies flow from the construction contract and from the UAE Civil Transactions Law. Start by checking whether the payment is certified or due under the contract's payment clause and interim-certificate mechanism, then issue a formal written demand recording the outstanding amount and any contractual interest or suspension rights. Many contracts (including FIDIC forms) give the contractor a right to suspend or reduce the rate of work, and ultimately to terminate, if certified sums remain unpaid after notice — but these rights must be exercised exactly as the contract requires or they can backfire. If payment is still not made, the contractor can pursue the dispute through the contract's forum: arbitration if there is an arbitration clause, otherwise the competent UAE court. Preserve your certificates, correspondence and records, and follow the notice steps before suspending. Because wrongful suspension or termination can expose you to counterclaims, take advice before acting. You can compare verified UAE construction and debt-recovery professionals on LEXAI for your situation.
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