Design And Construct Contract for United Arab Emirates

Design And Construct Contract Template for United Arab Emirates

This comprehensive Design and Construct Contract is tailored for use in the United Arab Emirates, incorporating local legal requirements under UAE Federal Laws and emirate-specific regulations. The document provides a complete framework for design and construction projects, addressing both design responsibilities and construction obligations in a single contract. It includes provisions for compliance with UAE building codes, environmental regulations, and labor laws, while incorporating international best practices in construction contract administration. The contract structure allows for risk allocation between parties, detailed payment mechanisms, and dispute resolution procedures aligned with UAE legal requirements.

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What is a Design And Construct Contract?

The Design And Construct Contract is specifically developed for use in construction projects within the United Arab Emirates where a single contractor takes responsibility for both design and construction elements. This procurement route is particularly suitable for projects where the employer seeks single-point responsibility and early contractor involvement. The contract incorporates key requirements of UAE Federal Laws, including UAE Civil Code provisions relating to Muqawala (Construction) contracts, local building regulations, and emirate-specific requirements. It provides comprehensive coverage of design obligations, construction requirements, payment mechanisms, and risk allocation, while ensuring compliance with local legal frameworks. The document is structured to support various project types and sizes, from commercial developments to infrastructure projects, and includes necessary provisions for both design and construction phase activities.

What sections should be included in a Design And Construct Contract?

1. Parties: Identification and details of the Employer and the Design-Build Contractor

2. Background: Context of the project and purpose of the agreement

3. Definitions and Interpretation: Defined terms, rules of interpretation, and contract hierarchy

4. Contractor's Obligations: Core design and construction obligations, including fitness for purpose and compliance with laws

5. Design Responsibilities: Specific design obligations, standards, and approval processes

6. Construction Obligations: Construction methodology, workmanship standards, and completion requirements

7. Employer's Obligations: Site access, permits, approvals, and other employer responsibilities

8. Time for Completion: Project timeline, milestones, extensions of time, and delay damages

9. Contract Price and Payment: Price structure, payment terms, variations, and final account

10. Quality and Testing: Quality assurance, testing requirements, and acceptance procedures

11. Variations: Procedures for changes to works, pricing, and time implications

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

13. Insurance and Indemnities: Required insurance coverage and mutual indemnification obligations

14. Force Majeure and Prevention: Force majeure events, consequences, and prevention principles

15. Termination: Termination rights, procedures, and consequences

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

What sections are optional to include in a Design And Construct Contract?

1. Performance Security: Requirements for performance bonds or guarantees, used when additional security is required

2. Advance Payment: Terms for advance payment and recovery, included when advance payment is agreed

3. Interface Management: Procedures for managing interfaces with other contractors, used on complex projects

4. Building Information Modeling (BIM): BIM requirements and protocols, included for projects using BIM

5. Sustainability Requirements: Green building and sustainability obligations, used for projects with specific environmental targets

6. Archaeological Findings: Procedures for dealing with archaeological discoveries, relevant for projects in historically significant areas

7. Intellectual Property Rights: Specific IP provisions beyond standard terms, used when innovative designs or methods are involved

8. Parent Company Guarantee: Requirements for parent company support, used when contractor's financial strength needs enhancement

9. Nominated Subcontractors: Provisions for employer-nominated subcontractors, used when specific subcontractors are required

10. Liquidated Damages for Performance: Specific performance-related damages, used when particular performance metrics are crucial

What schedules should be included in a Design And Construct Contract?

1. Schedule 1 - Employer's Requirements: Detailed technical specifications, performance requirements, and project brief

2. Schedule 2 - Site Information: Site details, surveys, geotechnical data, and existing conditions

3. Schedule 3 - Time Schedule: Detailed program, key dates, and milestone schedule

4. Schedule 4 - Payment Schedule: Payment milestones, rates, and pricing breakdown

5. Schedule 5 - Forms of Security: Templates for bonds, guarantees, and warranties

6. Schedule 6 - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

7. Schedule 7 - Key Personnel: List of key personnel and their responsibilities

8. Schedule 8 - Quality Assurance Requirements: Quality management system requirements and procedures

9. Schedule 9 - Health, Safety and Environment: HSE requirements and procedures

10. Schedule 10 - Forms of Certificates: Templates for various certificates including completion certificates

11. Schedule 11 - Permits and Approvals: List of required permits and responsible parties

12. Schedule 12 - Equipment and Materials: Specifications for key equipment and materials

13. Appendix A - Drawings: Initial design drawings and specifications

14. Appendix B - Technical Submittals: Requirements for technical submissions and approval 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

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Commercial Real Estate

Residential Development

Infrastructure

Healthcare

Education

Industrial

Hospitality

Retail

Data Centers

Mixed-Use Development

Transportation

Energy

Sports and Entertainment

Government and Public Works

Relevant Teams

Legal

Commercial

Operations

Project Management

Design

Construction

Procurement

Risk and Compliance

Finance

Technical

Quality Assurance

Health and Safety

Business Development

Contract Administration

Relevant Roles

Project Director

Construction Manager

Design Manager

Contract Manager

Commercial Manager

Project Engineer

Quantity Surveyor

Risk Manager

Legal Counsel

Chief Executive Officer

Technical Director

Procurement Manager

Operations Director

Development Manager

Cost Controller

Claims Manager

Quality Manager

HSE Manager

Industries
UAE Civil Code (Federal Law No. 5 of 1985): Fundamental law governing contracts, including construction contracts, obligations, and liabilities between parties. Contains specific provisions for Muqawala (Construction) contracts.
UAE Commercial Transactions Law (Federal Law No. 18 of 1993): Regulates commercial transactions and business relationships between parties, including payment terms and commercial obligations.
UAE Federal Law No. 4 of 2016 on Medical Liability: Relevant for design and construction of healthcare facilities, setting specific requirements and standards.
UAE Building Codes and Technical Regulations: Local emirate-specific building codes and regulations that govern design and construction standards, including Dubai Municipality Building Regulations and Abu Dhabi International Building Codes.
UAE Fire and Life Safety Code of Practice: Mandatory requirements for fire safety in design and construction, including emergency exits, fire resistance, and safety systems.
Environmental Laws (Federal Law No. 24 of 1999): Environmental protection requirements affecting construction projects, including environmental impact assessments and sustainability standards.
UAE Labor Law (Federal Law No. 8 of 1980): Governs employment relationships and worker safety requirements on construction projects.
Local Municipality Regulations: Specific regulations from individual emirates governing construction permits, design approvals, and local building requirements.
UAE Federal Law No. 2 of 2015 on Commercial Companies: Relevant for understanding the legal structure of contracting entities and joint ventures in construction projects.
UAE Arbitration Law (Federal Law No. 6 of 2018): Important for dispute resolution clauses in construction contracts, governing arbitration procedures and enforcement.
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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