The Subcontractor Termination Letter is a critical document used when a main contractor needs to formally end a subcontractor's engagement on a project in the United Arab Emirates. It is typically employed when there are significant performance issues, breach of contract, or other valid grounds for termination under UAE law. The document must carefully balance legal requirements under UAE Federal Law No. 5 of 1985 (Civil Code) and commercial practicalities, including proper notice periods and specific termination procedures outlined in the original subcontract. This letter should clearly state the grounds for termination, effective date, handover requirements, and final account arrangements. It serves as both a legal notice and a practical guide for managing the transition, protecting the main contractor's interests while ensuring compliance with UAE legal requirements regarding contract termination.
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1. Letter Header: Company letterhead, date, reference number, and proper addressing to the subcontractor including their full legal name and address
2. Contract Reference: Clear identification of the relevant subcontract including contract number, date, and project details
3. Termination Statement: Clear and unambiguous statement of termination, citing the relevant contractual clause or legal basis for termination
4. Effective Date: Specific date when the termination becomes effective, including any notice period requirements
5. Grounds for Termination: Detailed explanation of the reasons for termination, with reference to specific contract breaches or circumstances if applicable
6. Outstanding Obligations: List of any remaining obligations, pending works, or deliverables that need to be addressed
7. Handover Requirements: Specific instructions regarding the handover of work, materials, documentation, and site access passes
8. Final Account: Statement regarding final payment calculations, including any deductions or claims
9. Closing Statement: Formal closing including any requirements for acknowledgment and contact details for further communication
1. Dispute Resolution Reference: Include when there are ongoing disputes or likelihood of disputes, referencing the applicable dispute resolution mechanisms
2. Confidentiality Reminder: Include when there are specific confidentiality obligations that survive termination
3. Employee Transfer Provisions: Include when there are arrangements needed for the transfer or management of subcontractor's employees
4. Insurance Requirements: Include when specific insurance obligations continue post-termination
5. Warranty Obligations: Include when there are continuing warranty obligations for completed works
1. Schedule A - Outstanding Works List: Detailed list of incomplete works and status at termination
2. Schedule B - Payment Summary: Breakdown of final account including pending payments, retentions, and claims
3. Schedule C - Required Handover Documents: List of all documents, certificates, and warranties to be handed over
4. Schedule D - Asset Register: List of materials, equipment, or other assets to be returned or transferred
5. Appendix 1 - Relevant Contract Clauses: Copy of relevant termination clauses from the original contract
Relevant legal definitions
Agreement
Completion Certificate
Contract Price
Defects Liability Period
Effective Date of Termination
Final Account
Handover Date
Main Contract
Original Subcontract
Outstanding Works
Project
Project Site
Retention Money
Site Materials
Subcontract Works
Subcontractor
Termination Date
Termination Notice
Termination Payment
Work in Progress
Completion Certificate
Contract Price
Defects Liability Period
Effective Date of Termination
Final Account
Handover Date
Main Contract
Original Subcontract
Outstanding Works
Project
Project Site
Retention Money
Site Materials
Subcontract Works
Subcontractor
Termination Date
Termination Notice
Termination Payment
Work in Progress
Clauses
Contract Reference
Termination Notice
Grounds for Termination
Effective Date
Work Cessation
Site Access
Handover Requirements
Documentation Requirements
Payment Terms
Final Account
Retention Release
Materials and Equipment
Intellectual Property
Confidentiality
Warranties
Insurance
Dispute Resolution
Governing Law
Continuing Obligations
Bank Guarantees
Employee Matters
Health and Safety
Environmental Compliance
Quality Assurance
Defects Liability
Termination Notice
Grounds for Termination
Effective Date
Work Cessation
Site Access
Handover Requirements
Documentation Requirements
Payment Terms
Final Account
Retention Release
Materials and Equipment
Intellectual Property
Confidentiality
Warranties
Insurance
Dispute Resolution
Governing Law
Continuing Obligations
Bank Guarantees
Employee Matters
Health and Safety
Environmental Compliance
Quality Assurance
Defects Liability
Relevant Industries
Construction
Infrastructure
Real Estate Development
Oil & Gas
Energy
Manufacturing
Industrial
Telecommunications
Facilities Management
Engineering Services
Relevant Teams
Legal
Commercial
Operations
Project Management
Procurement
Construction
Contract Administration
Risk Management
Finance
Relevant Roles
Project Director
Construction Manager
Commercial Manager
Contract Manager
Legal Counsel
Project Manager
Procurement Manager
Site Manager
Operations Director
Chief Operating Officer
Commercial Director
Legal Director
Risk Manager
Quantity Surveyor
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