Project Agreement for United Arab Emirates

Project Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes the framework for project execution between multiple parties. It details the scope, responsibilities, timelines, and commercial terms for project delivery while ensuring compliance with UAE federal and local regulations. The agreement incorporates specific provisions for risk allocation, payment mechanisms, and dispute resolution that align with UAE legal requirements, including considerations for both mainland and free zone jurisdictions. It serves as the primary contract document for complex projects across various sectors in the UAE market.

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What is a Project Agreement?

The Project Agreement serves as a fundamental contract document for managing complex projects within the United Arab Emirates legal framework. It is typically used when parties need to establish a detailed framework for project execution, whether in construction, technology implementation, infrastructure development, or other significant undertakings. The agreement addresses crucial elements including scope definition, risk allocation, payment structures, and project governance, while ensuring compliance with UAE federal laws and local emirate regulations. This document is particularly important in the UAE context where projects often involve multiple stakeholders, including government entities, private sector companies, and international parties. The Project Agreement must incorporate specific provisions required under UAE law, including those related to dispute resolution, force majeure, and liability limitations, while also considering any applicable free zone regulations or special economic zone requirements.

What sections should be included in a Project Agreement?

1. Parties: Identification of contracting parties, including full legal names, addresses, and registration details as per UAE requirements

2. Background: Context of the project, including relevant history and objectives

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

4. Scope of Work: Detailed description of the project scope, deliverables, and specifications

5. Project Timeline: Key dates, milestones, and completion schedule

6. Contract Price and Payment Terms: Pricing structure, payment schedule, and invoicing requirements

7. Obligations of the Parties: Detailed responsibilities and obligations of each party

8. Project Management: Management structure, reporting requirements, and governance framework

9. Quality Standards and Compliance: Required standards, specifications, and compliance requirements

10. Changes and Variations: Procedures for handling changes to scope, timeline, or pricing

11. Risk Allocation: Distribution of risks between parties and risk management procedures

12. Force Majeure: Definition and consequences of force majeure events under UAE law

13. Warranties and Representations: Warranties and representations made by each party

14. Liability and Indemnification: Limitations of liability and indemnification obligations

15. Insurance: Required insurance coverage and obligations

16. Confidentiality: Protection of confidential information and trade secrets

17. Intellectual Property: Ownership and usage rights of intellectual property

18. Termination: Grounds for termination and consequences

19. Dispute Resolution: Dispute resolution mechanisms including arbitration provisions compliant with UAE law

20. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant jurisdiction

What sections are optional to include in a Project Agreement?

1. Government Approvals: Required when project needs specific government permits or licenses

2. Financing Arrangements: Included when project involves external financing or specific funding requirements

3. Environmental Compliance: Required for projects with environmental impact considerations

4. Local Content Requirements: Included for projects subject to UAE local content requirements

5. Security Arrangements: Required when performance bonds or other security instruments are needed

6. Step-in Rights: Included when lenders or other parties require step-in rights

7. Anti-corruption Provisions: Detailed provisions for government or international projects

8. Technology Transfer: Required for projects involving significant technology transfer

9. Training and Knowledge Transfer: Included when local workforce development is required

10. Free Zone Specific Requirements: Required for projects in UAE free zones

What schedules should be included in a Project Agreement?

1. Schedule 1 - Detailed Scope of Work: Comprehensive technical specifications and work requirements

2. Schedule 2 - Project Timeline: Detailed project schedule with milestones and deadlines

3. Schedule 3 - Pricing and Payment Schedule: Detailed breakdown of prices and payment terms

4. Schedule 4 - Key Personnel: List of key personnel and their roles

5. Schedule 5 - Performance Standards: Detailed quality and performance requirements

6. Schedule 6 - Testing and Acceptance Procedures: Procedures for testing and accepting deliverables

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

8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and coverage limits

9. Schedule 9 - Permits and Licenses: List of required permits and responsibilities for obtaining them

10. Schedule 10 - Site Access and Requirements: Site-specific requirements and access procedures

11. Appendix A - Technical Drawings and Specifications: Detailed technical drawings and specifications

12. Appendix B - Health and Safety Requirements: Health and safety standards and procedures

13. Appendix C - Environmental Management Plan: Environmental management requirements and 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

Cost

Free to use

Relevant legal definitions

Clauses

Relevant Industries

Construction & Infrastructure

Real Estate Development

Energy & Utilities

Technology & Digital Transformation

Healthcare

Education

Transportation & Logistics

Manufacturing

Telecommunications

Tourism & Hospitality

Relevant Teams

Legal

Commercial

Project Management Office

Operations

Finance

Risk & Compliance

Procurement

Technical

Business Development

Construction Management

Relevant Roles

Project Director

Legal Counsel

Contract Manager

Commercial Manager

Project Manager

Business Development Director

Chief Operating Officer

Technical Director

Finance Director

Risk Manager

Procurement Manager

Operations Manager

Compliance Officer

Chief Executive Officer

Construction Manager

Development Manager

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Download a Standard Template

What is a Project Agreement?

What sections should be included in a Project Agreement?

What sections are optional to include in a Project Agreement?

What schedules should be included in a Project Agreement?

Authors

Alex Denne

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