General Contractor Construction Agreement for United Arab Emirates

General Contractor Construction Agreement Template for United Arab Emirates

A comprehensive construction agreement governed by UAE law that establishes the legal relationship between a project owner (Employer) and a General Contractor for the execution of construction works. The agreement incorporates UAE Civil Code requirements, particularly the Muqawala (Construction) contract provisions, and addresses key aspects including scope of works, payment terms, timelines, quality standards, and dispute resolution mechanisms. It includes provisions for compliance with UAE labor laws, environmental regulations, and relevant emirate-specific building codes, making it suitable for construction projects across the United Arab Emirates.

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What is a General Contractor Construction Agreement?

The General Contractor Construction Agreement is a fundamental document for construction projects in the United Arab Emirates, used when a project owner (Employer) wishes to engage a main contractor for the execution of construction works. This agreement is structured to comply with UAE Civil Code provisions on Muqawala contracts (Articles 872-896) and incorporates requirements from various UAE federal laws and emirate-specific regulations. It is typically used for medium to large-scale construction projects where a single contractor takes primary responsibility for construction execution. The agreement covers essential elements including scope definition, pricing, payment mechanisms, project timeline, quality requirements, HSE standards, and risk allocation. It also addresses UAE-specific requirements such as local licensing, workforce regulations, and environmental compliance. The document serves as the primary contract governing the relationship between the Employer and General Contractor throughout the project lifecycle, from commencement to completion and defects liability period.

What sections should be included in a General Contractor Construction Agreement?

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

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

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

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, payment conditions, and invoicing requirements

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

7. Contractor's Obligations: General and specific obligations including quality standards, workforce management, and compliance requirements

8. Employer's Obligations: Responsibilities of the Employer including site access, permits, and approvals

9. Materials and Equipment: Requirements for procurement, quality, testing, and approval of materials and equipment

10. Variations: Process for requesting, approving, and implementing changes to the scope of works

11. Quality Control and Inspection: Quality assurance requirements, inspection procedures, and acceptance criteria

12. Health, Safety and Environment: HSE requirements, compliance with regulations, and reporting obligations

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

14. Warranties and Defects Liability: Warranty periods, defects notification, and remediation procedures

15. Termination: Grounds for termination, termination procedures, and consequences

16. Force Majeure: Definition of force majeure events and their consequences

17. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions

18. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction details

What sections are optional to include in a General Contractor Construction Agreement?

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

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

3. Subcontracting: Rules and restrictions for subcontracting, included when subcontracting is permitted

4. Intellectual Property Rights: IP provisions, included when design or innovative construction methods are involved

5. Confidentiality: Confidentiality obligations, included for projects with sensitive information

6. Local Content Requirements: Requirements for local content and Emiratisation, included for government projects

7. Liquidated Damages: Pre-agreed damages for specific breaches, included for time-sensitive projects

8. Step-in Rights: Employer's right to take over works, included for critical infrastructure projects

What schedules should be included in a General Contractor Construction Agreement?

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 contract price, rates, and quantities

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

5. Schedule 5 - Site Information: Site details, access points, and existing conditions

6. Schedule 6 - Required Insurances: Details of all required insurance policies

7. Schedule 7 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees

8. Schedule 8 - Key Personnel: List of key personnel and their qualifications

9. Schedule 9 - Quality Assurance Requirements: Detailed quality control procedures and standards

10. Schedule 10 - HSE Requirements: Detailed health, safety, and environmental requirements

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

Healthcare

Education

Hospitality

Retail

Government and Public Works

Energy

Transportation

Relevant Teams

Legal

Construction

Commercial

Operations

Procurement

Health Safety and Environment

Quality Control

Project Management

Risk and Compliance

Technical

Business Development

Finance

Relevant Roles

Construction Manager

Project Director

Commercial Director

Contracts Manager

Legal Counsel

Project Manager

Site Manager

Chief Executive Officer

Operations Director

Procurement Manager

Quality Control Manager

HSE Manager

Technical Director

Development Manager

Cost Controller

Risk Manager

Claims Manager

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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