Construction Agreement Form for United Arab Emirates

Construction Agreement Form Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes the contractual relationship between an employer/developer and a contractor for construction works. This agreement outlines the scope of works, payment terms, timelines, and obligations of all parties involved in the construction project. It incorporates UAE-specific requirements, including compliance with local building codes, environmental regulations, and labor laws. The document addresses key aspects such as quality standards, safety requirements, dispute resolution mechanisms, and warranty obligations, all within the framework of UAE Civil Code and relevant emirate-specific regulations.

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What is a Construction Agreement Form?

The Construction Agreement Form is a fundamental document used in the United Arab Emirates for establishing legally binding relationships between developers/employers and contractors for construction projects. This document is essential for any construction undertaking in the UAE, whether for commercial, residential, or infrastructure projects. The agreement must comply with UAE Civil Code (Federal Law No. 5 of 1985) and relevant emirate-specific construction regulations. The Construction Agreement Form typically includes detailed provisions for scope of works, payment mechanisms, project timelines, quality standards, and dispute resolution procedures. It should be customized based on project size, complexity, and specific requirements while maintaining compliance with local laws and industry standards. The document serves as the primary reference point for project execution and dispute resolution throughout the construction period and defects liability period.

What sections should be included in a Construction Agreement Form?

1. Parties: Identification of the contracting parties including full legal names, license numbers, and registered addresses

2. Background: Context of the agreement, project overview, and basis for the contractual relationship

3. Definitions and Interpretation: Defined terms, rules of interpretation, and language provisions (noting UAE requirements for Arabic)

4. Scope of Works: Detailed description of construction works, contractor obligations, and project deliverables

5. Contract Price and Payment Terms: Price, payment schedule, variations, and payment procedures including retention provisions

6. Project Timeline: Commencement date, completion date, milestones, and extension provisions

7. Contractor Obligations: Key responsibilities, quality standards, compliance requirements, and performance guarantees

8. Employer Obligations: Site access, permits, approvals, and other employer responsibilities

9. Materials and Workmanship: Quality requirements, testing procedures, and approval processes

10. Health, Safety and Environment: HSE requirements, compliance with UAE regulations, and safety procedures

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

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

13. Insurance and Indemnities: Required insurance coverage, liability provisions, and indemnification obligations

14. Force Majeure: Definition of force majeure events and consequences

15. Suspension and Termination: Rights and procedures for suspension and termination of works

16. Dispute Resolution: Dispute resolution procedures, governing law, and jurisdiction provisions

17. General Provisions: Notices, assignments, amendments, and other standard contractual provisions

What sections are optional to include in a Construction Agreement Form?

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

2. Advance Payment: Terms for advance payment and related guarantees, if advance payment is required

3. Subcontracting: Rules and procedures for subcontracting, if subcontractors will be used

4. Intellectual Property: IP rights and obligations, relevant for projects involving design elements

5. Local Content Requirements: Provisions for local content and Emiratisation requirements, if applicable

6. Liquidated Damages: Pre-agreed damages for specific breaches, if required

7. Site Conditions: Specific provisions relating to site conditions, if significant site-related risks exist

8. Testing and Commissioning: Detailed testing requirements, for projects requiring complex commissioning

What schedules should be included in a Construction Agreement Form?

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings

2. Schedule 2 - Project Program: Detailed timeline, milestones, and critical path

3. Schedule 3 - Price Schedule: Detailed breakdown of prices, rates, and quantities

4. Schedule 4 - Payment Schedule: Payment milestones and conditions precedent

5. Schedule 5 - Key Personnel: List of key personnel and their responsibilities

6. Schedule 6 - Forms of Guarantees: Templates for various guarantees and bonds

7. Schedule 7 - HSE Requirements: Detailed health, safety, and environmental requirements

8. Schedule 8 - Quality Assurance Plan: Quality control procedures and requirements

9. Appendix A - Site Plan: Drawings and details of the construction site

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

11. Appendix C - Insurance Requirements: Detailed insurance specifications and certificates

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

Energy and Utilities

Healthcare Facilities

Educational Facilities

Hospitality and Tourism

Retail Development

Transportation

Relevant Teams

Legal

Operations

Construction

Commercial

Procurement

Finance

Risk Management

Technical

Compliance

Project Management

Business Development

Contract Administration

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Project Manager

Commercial Director

Chief Executive Officer

Operations Director

Development Manager

Quantity Surveyor

Risk Manager

Procurement Manager

Technical Director

Finance Director

Compliance Officer

Chief Operating Officer

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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