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How are interim payment certificates and payment disputes handled in UAE construction?

Asked by Anonymous·Jun 26, 2026·1 answers
A contractor disagrees with the amount the Engineer has certified for an interim payment and wants to know the process.

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
On most UAE construction projects, the contractor is paid progressively against interim payment certificates: the contractor submits a statement of work done, the Engineer reviews and certifies the amount due, and the employer pays the certified sum within the contractual period, usually after deductions for retention and any agreed set-offs. A payment dispute typically arises when the Engineer certifies less than the contractor claims, the employer delays or withholds payment, or amounts are deducted. The first step is to identify whether the dispute is about valuation (challenge the Engineer's assessment through the claims and determination procedure) or about non-payment of a certified sum (enforce the certificate). If unresolved, the dispute escalates through the contract's dispute-resolution route — a dispute board, then arbitration or the competent court. Late payment may also carry contractual interest and, after notice, a right to suspend. Keep your statements, measured records and the certificate history. Because payment disputes turn on the contract mechanics and good records, early advice helps. Compare verified UAE construction professionals on LEXAI for your situation.
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