Simple Construction Contract for United Arab Emirates

Simple Construction Contract Template for United Arab Emirates

This Simple Construction Contract is designed for use in the United Arab Emirates, complying with UAE Civil Code (Federal Law No. 5 of 1985) and relevant local emirate regulations. It provides a comprehensive yet straightforward framework for construction projects, covering essential elements such as scope of works, payment terms, completion requirements, and dispute resolution mechanisms. The document is particularly suited for small to medium-sized construction projects where a balance between legal protection and practical usability is required, while ensuring compliance with UAE construction laws and regulations.

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What is a Simple Construction Contract?

This Simple Construction Contract is specifically tailored for use in the United Arab Emirates construction sector, designed to provide a balanced and practical contractual framework while ensuring compliance with UAE Civil Code and local emirate regulations. The document is particularly suitable for small to medium-sized construction projects where parties require a straightforward yet comprehensive agreement that covers all essential aspects of a construction relationship. It incorporates key requirements of UAE construction law while remaining accessible and user-friendly. The contract includes provisions for scope of works, payment mechanisms, completion requirements, and dispute resolution, all aligned with UAE legal requirements and market practice. It's designed to be used by property owners, developers, and contractors who need a reliable contractual framework without the complexity of larger standard form contracts.

What sections should be included in a Simple Construction Contract?

1. Parties: Identification of the Employer and Contractor, including full legal names, addresses, and registration details

2. Background: Brief context of the project and purpose of the agreement

3. Definitions: Key terms used throughout the contract defined for clarity

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

5. Contract Price and Payment Terms: Fixed price or measurement basis, payment schedule, and payment procedures

6. Duration and Programme: Project timeline, completion date, and any milestone dates

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

8. Employer's Obligations: Access to site, permits, approvals, and other client responsibilities

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

10. Variations: Process for handling changes to the scope of works

11. Health and Safety: Safety requirements and responsibilities on site

12. Completion and Defects: Completion procedures, defects liability period, and remediation process

13. Insurance and Liability: Required insurance coverage and liability allocation

14. Termination: Grounds and procedures for contract termination

15. Governing Law and Dispute Resolution: UAE law as governing law and dispute resolution procedures

What sections are optional to include in a Simple Construction Contract?

1. Performance Security: Requirements for performance bonds or guarantees, used for larger value contracts

2. Advance Payment: Terms for advance payment and associated guarantee, if applicable

3. Subcontracting: Rules and procedures for subcontracting, if permitted

4. Force Majeure: Provisions for unforeseen circumstances, recommended for longer-term projects

5. Intellectual Property: IP rights and obligations, relevant if design elements are involved

6. Confidentiality: Confidentiality obligations, important for sensitive projects

7. Environmental Compliance: Specific environmental requirements, necessary for projects with environmental impact

8. Site Conditions: Provisions relating to ground conditions and site investigations, important for ground works

What schedules should be included in a Simple Construction Contract?

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

2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of prices and bill of quantities

3. Schedule 3 - Programme: Detailed construction programme and milestone dates

4. Schedule 4 - Site Information: Site details, access points, and any relevant site conditions

5. Schedule 5 - Forms and Certificates: Template forms for payment applications, completion certificates, etc.

6. Schedule 6 - Drawings: All construction drawings and design documents

7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

8. Schedule 8 - Key Personnel: List of key personnel from both parties and their roles

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
Clauses
Relevant Industries

Construction

Real Estate Development

Infrastructure

Residential Development

Commercial Development

Industrial Development

Hospitality

Retail

Education

Relevant Teams

Legal

Operations

Construction

Commercial

Development

Procurement

Property

Facilities Management

Project Management

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Contract Manager

Legal Counsel

Property Developer

Site Manager

Quantity Surveyor

Commercial Manager

Development Director

Procurement Manager

Chief Operating Officer

Operations Manager

Facilities 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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