Building Construction Contract Agreement for United Arab Emirates

Building Construction Contract Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the terms and conditions for construction projects in the United Arab Emirates. This document outlines the rights, responsibilities, and obligations of both the employer and contractor in detail, incorporating specific UAE construction regulations and local building codes. It includes provisions for project execution, payment terms, quality standards, safety requirements, dispute resolution mechanisms, and compliance with UAE labor laws and environmental regulations. The agreement is structured to provide clear guidance on project management while ensuring adherence to local municipality requirements and industry standards.

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What is a Building Construction Contract Agreement?

The Building Construction Contract Agreement is a fundamental legal document used in the United Arab Emirates for managing construction projects of various scales. It serves as the primary agreement between the project owner (employer) and the construction company (contractor), establishing the legal framework for project execution under UAE law. This document is essential when undertaking any significant construction work in the UAE, whether for commercial, residential, or industrial purposes. It incorporates crucial elements such as scope of work, payment terms, timelines, quality standards, and compliance requirements with UAE construction regulations, building codes, and environmental standards. The agreement also addresses specific UAE requirements regarding labor laws, insurance, and dispute resolution mechanisms, making it particularly suited for construction projects within the UAE jurisdiction. It includes detailed schedules and appendices covering technical specifications, drawings, and project-specific requirements.

What sections should be included in a Building Construction Contract Agreement?

1. Parties: Identification and details of the Employer and Contractor, including their legal status and registered addresses

2. Background: Context of the agreement, including project overview and basis for entering into the contract

3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the agreement

4. Scope of Works: Detailed description of the construction works to be performed by the Contractor

5. Contract Price and Payment Terms: Amount payable, payment schedule, variations, and payment procedures

6. Project Timeline: Commencement date, completion date, milestones, and provisions for extensions of time

7. Contractor's Obligations: Key responsibilities including workmanship, materials, compliance with laws, and safety requirements

8. Employer's Obligations: Responsibilities including site access, permits, approvals, and payment obligations

9. Quality and Standards: Required quality standards, inspections, testing procedures, and acceptance criteria

10. Variations: Procedures for changes to scope, pricing of variations, and approval process

11. Health and Safety: Safety requirements, procedures, and compliance with UAE safety regulations

12. Insurance and Indemnities: Required insurance coverage and mutual indemnification provisions

13. Defects Liability: Defects notification period, remediation procedures, and warranties

14. Suspension and Termination: Rights and procedures for suspension and termination of the contract

15. Force Majeure: Events constituting force majeure and consequential rights and obligations

16. Dispute Resolution: Procedures for resolving disputes, including arbitration under UAE law

17. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction provisions

What sections are optional to include in a Building Construction Contract Agreement?

1. Performance Security: Requirements for performance bonds or guarantees, used for high-value projects

2. Advance Payment: Terms for advance payments and related securities, optional based on project financing structure

3. Nominated Subcontractors: Provisions for employer-nominated subcontractors, if applicable

4. Environmental Compliance: Specific environmental requirements, particularly for projects with significant environmental impact

5. Green Building Requirements: Sustainability requirements, mandatory for certain emirates or project types

6. Equipment and Materials Supply: Specific provisions for employer-supplied materials or equipment

7. Testing and Commissioning: Detailed testing requirements for complex mechanical/electrical installations

8. Intellectual Property Rights: IP provisions where design or innovative construction methods are involved

9. Site Security: Additional security requirements for sensitive or high-security locations

What schedules should be included in a Building Construction Contract Agreement?

1. Schedule 1 - Works Specification: Detailed technical specifications of the construction works

2. Schedule 2 - Site Plans and Drawings: Architectural, structural, and other technical drawings

3. Schedule 3 - Project Program: Detailed timeline, milestones, and critical path schedule

4. Schedule 4 - Price Schedule and Bill of Quantities: Detailed breakdown of prices and quantities

5. Schedule 5 - Payment Schedule: Milestone-based payment schedule and payment procedures

6. Schedule 6 - Quality Assurance Plan: Detailed quality control procedures and requirements

7. Schedule 7 - Health and Safety Plan: Detailed safety procedures and requirements

8. Schedule 8 - Performance Specifications: Performance criteria and testing requirements

9. Schedule 9 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees

10. Schedule 10 - Insurance Requirements: Detailed insurance specifications and coverage requirements

11. Appendix A - List of Approved Subcontractors: Pre-approved subcontractors for specific work packages

12. Appendix B - Permits and Licenses: Copies of relevant permits and licenses

13. Appendix C - Environmental Management Plan: Environmental protection and compliance procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Development

Hospitality

Healthcare

Education

Retail

Government/Public Works

Energy and Utilities

Relevant Teams

Legal

Construction

Project Management

Commercial

Procurement

Finance

Operations

Health and Safety

Quality Control

Risk Management

Technical Services

Business Development

Compliance

Contract Administration

Relevant Roles

Chief Executive Officer

Managing Director

Construction Manager

Project Director

Contract Manager

Legal Counsel

Project Manager

Site Engineer

Quantity Surveyor

Procurement Manager

Health and Safety Manager

Quality Control Manager

Commercial Director

Technical Director

Risk Manager

Finance Director

Operations Manager

Business Development Manager

Compliance Officer

Construction Supervisor

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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