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How are interim payment certificates and payment disputes handled in UAE construction?
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.
What is prolongation cost and can a contractor claim it in the UAE?
Prolongation cost is the additional time-related expenditure a contractor incurs because the project is extended beyond the original completion date — typically site overheads such as staff, site accommodation, plant standing time, and supervision that continue during the extended period. A contractor can claim prolongation cost in the UAE where it has a valid entitlement to an extension of time for an employer-risk delay event and can prove the additional cost was actually and reasonably incurred as a result. The claim usually sits alongside the extension-of-time claim and must follow the contract's notice and particulars procedure; an EOT does not automatically carry money, so cost must be separately substantiated. Crucially, the cost must be linked to the delay event and supported by records — global or unsubstantiated claims are routinely reduced or rejected. Under UAE law the contract governs entitlement, subject to mandatory provisions. Keep contemporaneous cost records and a clear cause-and-effect narrative tied to the delay. Because prolongation claims are evidence-intensive, expert and legal support helps. Compare verified UAE construction professionals on LEXAI.
Can a developer terminate a contractor under a FIDIC contract in the UAE?
Yes, but only on the grounds and through the procedure the contract allows. FIDIC contracts give the employer a right to terminate for specified contractor defaults — such as failing to proceed, abandoning the works, or persistent breach — usually after serving a formal notice to correct and allowing the contractor an opportunity to remedy before termination takes effect. Most FIDIC forms also permit termination for the employer's convenience on different terms. In onshore UAE, the contract governs, but the UAE Civil Transactions Law also regulates termination of contracts and the consequences, and a wrongful or premature termination can itself be a serious breach exposing the developer to a damages claim from the contractor. So the developer must establish a valid ground, follow the notice and cure steps exactly, and document the contractor's defaults. Termination is high-risk and frequently litigated, so it should not be done without confirming the contractual basis and procedure first. A UAE construction lawyer can review the grounds and draft the notices — compare verified professionals on LEXAI for your project.
How do I make an extension of time (delay) claim under a FIDIC contract in the UAE?
To claim an extension of time (EOT) under a FIDIC contract in the UAE, you generally must follow the contract's claims procedure precisely: give written notice of the event or circumstance causing delay within the period the contract specifies, keep contemporary records, and then submit a detailed claim with supporting particulars and a delay analysis demonstrating the effect on the completion date. EOT is typically available for employer-risk events such as variations, late access, or instructions outside the contractor's control. The Engineer assesses the claim and determines any extension due. Two points matter most: timely notice and evidence. Many FIDIC forms make late notice a bar to the claim, so missing the notice deadline can defeat an otherwise valid entitlement. Under UAE law the contract governs, but mandatory provisions on good faith and on penalties can still apply. Read your specific edition's notice and particulars requirements and start recording the delay's causes and effects immediately. A UAE construction or delay specialist can prepare the analysis and notices — you can compare verified professionals on LEXAI.
How do I claim for a variation in a UAE construction contract?
A variation is a change to the scope, quantity or quality of the works instructed after the contract is signed, and most UAE construction contracts — including FIDIC forms — contain a clause governing how variations are instructed, valued and paid. To claim properly, ensure the change is the subject of a written instruction (or confirm an oral instruction in writing as the contract requires), then value the additional work using the contract's valuation method, typically contract rates, pro-rated rates, or fair rates where no comparable rate exists. If the variation also causes delay, you may need a separate extension-of-time and cost claim with its own notice. The key risks are carrying out extra work without a proper instruction, or failing to follow the notice and valuation steps, either of which can undermine payment. Under UAE law the contract terms govern valuation, subject to mandatory provisions. Keep written instructions, measured records and a clear valuation. A UAE construction lawyer or quantity-surveying specialist can structure the claim; compare verified professionals on LEXAI for your project.
What is a Dispute Adjudication Board (DAB) under FIDIC and is it used in the UAE?
A Dispute Adjudication Board (DAB), called a Dispute Avoidance/Adjudication Board (DAAB) in newer FIDIC editions, is a panel of one or three neutral experts that the parties appoint to decide disputes quickly during the project. Under FIDIC, when a dispute arises a party can refer it to the DAB, which issues a binding decision within the timeframe the contract sets. The decision is binding and must be complied with immediately, but either party can express dissatisfaction and ultimately refer the dispute to arbitration if it is not finally resolved. The aim is to keep the project moving and avoid stockpiling disputes to the end. In the UAE, DAB clauses are used on larger FIDIC projects, though parties sometimes amend or delete them in the Particular Conditions, so check whether your contract actually constitutes a board and on what terms. Following the DAB step correctly can be a pre-condition to arbitration. Review your dispute clause carefully. A UAE construction-disputes specialist can advise on using or challenging the DAB process — compare verified professionals on LEXAI.
How does construction arbitration work in Dubai?
Construction arbitration in Dubai is a private dispute-resolution process where an arbitral tribunal, rather than a court, issues a binding award. It only applies if your contract contains a valid arbitration agreement specifying the rules and seat. Many Dubai construction contracts refer disputes to the Dubai International Arbitration Centre (DIAC), while others choose DIFC- or ADGM-seated arbitration or ad hoc arbitration. The process typically involves filing a request for arbitration, appointing the tribunal, exchanging written submissions and expert/delay evidence, a hearing, and a final award. UAE onshore arbitrations are governed by the Federal Arbitration Law, while DIFC and ADGM have their own arbitration frameworks. Awards are generally final and can be enforced through the courts, and the UAE is a party to the New York Convention, which assists cross-border enforcement. The exact procedure, seat and applicable rules are set by your arbitration clause, so read it first. Construction arbitration is document- and expert-heavy, so early legal and technical support matters. You can compare verified UAE arbitration and construction professionals on LEXAI.
What can a contractor do if a developer fails to pay in the UAE?
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.
How do liquidated damages for delay work in UAE construction contracts?
Liquidated (delay) damages are a pre-agreed amount the contract entitles the employer to deduct or claim when the contractor completes late, commonly expressed as a rate per day or week of delay up to a capped maximum. In the UAE, such clauses are enforceable in principle, but they operate subject to the UAE Civil Transactions Law's treatment of agreed compensation and penalty clauses: a court or tribunal has the power to adjust the agreed sum to reflect the actual loss suffered if the stipulated amount is shown to be excessive or if no loss was in fact incurred. This means the contractual figure is a starting point, not always the final amount. The contractor may also defend by proving an entitlement to an extension of time, which moves the completion date and can reduce or eliminate the damages. To apply delay damages, check the contract's delay clause and cap, confirm the adjusted completion date after any EOT, and keep evidence. Because these claims are frequently contested, take advice. Compare verified UAE construction professionals on LEXAI.
What notice must a contractor give for a FIDIC claim and what happens if it is late?
FIDIC contracts require a contractor to give written notice of a claim for additional time or money within a set period after it became aware (or should have become aware) of the event giving rise to the claim, followed by a fully detailed claim with supporting particulars within a further period. The notice is a condition: under the standard wording, if the contractor fails to give notice within the required time, it can lose its entitlement to the extension of time or extra payment entirely, even if the underlying claim was otherwise valid. This 'time-bar' is one of the most common reasons construction claims fail. That said, in onshore UAE there is argument about how strictly such time-bars operate against the Civil Transactions Law's principles of good faith and the rule against forfeiting established rights, so a late notice is not always automatically fatal — it is fact-specific. The practical lesson is to issue notices early and in writing. If you have missed a deadline, get advice quickly rather than assuming the claim is dead. Compare verified UAE construction professionals on LEXAI.
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