Project-Based Contract Generator for United Arab Emirates

A Project-Based Contract sets out the terms for completing a specific project or deliverable in the UAE, rather than ongoing work. It clearly defines what needs to be done, when it should be finished, and how much it will cost - all tied to concrete project milestones.

Under UAE labor laws, these contracts must specify the project's scope, duration, and completion criteria. They're common in construction, technology, and consulting sectors, where companies need specialized expertise for time-bound initiatives. The contract ends once the project is successfully delivered, making it different from traditional employment agreements that run indefinitely.

Use a Project-Based Contract when hiring specialized talent or companies for standalone initiatives with clear endpoints in the UAE. This works perfectly for one-off construction projects, IT system implementations, marketing campaigns, or consulting engagements where you need expert help for a defined period.

These contracts are especially valuable when working with freelancers or contractors across Emirates' free zones, where standard employment agreements don't fit. They protect both parties by clearly outlining deliverables, timelines, and payment terms - essential for complex projects where scope management and milestone tracking matter most.

• Fixed-Price Contracts: Set a total project cost upfront, popular for UAE construction and development projects where scope is clearly defined
• Time-and-Materials Contracts: Bill based on actual hours and resources used, common in IT and consulting projects across Emirates' free zones
• Milestone-Based Contracts: Break payment into stages tied to specific deliverables, preferred for large-scale infrastructure projects
• Cost-Plus Contracts: Cover actual costs plus agreed profit margin, typically used in research and development initiatives
• Unit-Rate Contracts: Price work by measurable units, popular in manufacturing and industrial projects throughout the UAE

• Project Owners/Clients: UAE companies or organizations needing specific deliverables, responsible for defining requirements and approving milestones
• Contractors/Service Providers: Specialized firms or freelancers executing the project work, often operating through free zones
• Legal Teams: In-house or external counsel drafting and reviewing contract terms to ensure UAE law compliance
• Project Managers: Oversee day-to-day implementation, track deliverables, and manage relationship between parties
• Finance Departments: Handle payment schedules, invoicing, and financial compliance aspects of the contract

• Project Scope: Define detailed deliverables, technical specifications, and quality standards expected
• Timeline Details: Map out project phases, milestones, and completion dates aligned with UAE business calendars
• Payment Structure: Outline costs, payment schedules, and currency details following UAE financial regulations
• Party Information: Gather trade licenses, company details, and authorized signatory information
• Performance Metrics: Set clear success criteria and measurement methods
• Risk Management: Identify potential challenges and include appropriate mitigation clauses under UAE law

• Party Details: Full legal names, trade license numbers, and registered addresses of all involved entities
• Project Scope: Detailed description of deliverables, specifications, and quality standards
• Duration Clause: Clear start date, completion timeline, and milestone deadlines
• Payment Terms: Cost breakdown, payment schedule, and currency specifications per UAE regulations
• Termination Rights: Conditions for contract ending, notice periods, and consequences
• Dispute Resolution: Agreed UAE jurisdiction and arbitration procedures
• Force Majeure: Provisions for unforeseen events under UAE Civil Code

A Project-Based Contract differs significantly from an Employment Contract in several key aspects under UAE law. While both govern work relationships, their structure and implications vary considerably.

• Duration and Scope: Project-Based Contracts end when specific deliverables are completed, while Employment Contracts typically run indefinitely
• Legal Status: Employment Contracts fall under UAE Labor Law requiring benefits, leave, and end-of-service gratuity; Project-Based Contracts operate under civil commercial law
• Payment Structure: Project contracts usually involve milestone-based payments or fixed fees, not monthly salaries
• Control and Supervision: Project contractors maintain independence in how they complete work, while employees follow company procedures and direct supervision
• Benefits and Protection: Employees receive mandatory benefits and labor law protection; project contractors operate as independent businesses with their own insurance and liability