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Legal Consultation
About real estate and general contracting services
Working in the field of real estate and construction contracting requires professional legal support. Therefore, we offer you customized legal consulting services to meet your business needs. Our legal team provides expertise and specialized services to ensure the success of your project and compliance with laws and regulations. Therefore, we provide the following services:
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Analysis and preparation of contracting and maintenance contracts.
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Analysis and preparation of engineering supervision contracts.
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Consulting on construction financing contracts by banks and financial institutions operating in the country.
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Consultations on the legal organization of projects, from obtaining licenses to compliance with legal standards.
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Consulting related to approving disbursements based on the contractor's progress.
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Analysis and preparation of building materials supply contracts.
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Monitoring work execution schedules, quantity schedules, and taking legal actions regarding them.
What are the obligations and responsibilities of the contractor in a contract agreement?
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If the employer stipulated that the contractor provides all or some of the materials, the contractor is responsible for ensuring the availability of the agreed-upon conditions and specifications, if any. Otherwise, they are obliged to ensure they are fit for the intended purpose according to custom.
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If the employer provided the materials, the contractor must exercise the care of an ordinary person in preserving them and must observe technical principles in their work. They should return any remaining materials to the employer.
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The contractor bears the expenses necessary for completing the work, including machinery and tools, unless otherwise agreed upon.
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The contractor is obliged to complete the work according to the contract terms and within the agreed-upon timeframe. If there are no terms or agreed-upon duration, they must complete it according to commonly accepted standards and within a reasonable timeframe dictated by the nature of the work.
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If the contractor breaches the contract terms during the work, the employer may excuse them and require rectification within a reasonable period specified by them. If this period elapses without rectification, the employer may assign another contractor to complete or rectify the work at the expense of the original contractor, or they may request contract termination.
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The employer may immediately request contract termination if it becomes impossible to rectify the defect, or if the contractor delays starting or completing the work beyond the agreed-upon timeframe.
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If the item perishes or is damaged due to reasons beyond the contractor's control before delivery to the employer, the contractor cannot claim the agreed-upon fee or the expenses incurred unless the employer was in breach of their obligation to accept the work at the time of destruction or damage.
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If the materials are provided by the employer and the item perishes or is damaged before delivery due to reasons beyond the contractor's control, the employer cannot demand payment for them unless the contractor was excused for failing to deliver the work, and it is not proven that the item would have perished or been damaged if it had been delivered without breaching their obligation.
Frequently asked questions about real estate and general contracting
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What is a contract agreement?
A contract agreement is a contract whereby the contractor undertakes to create or perform a task in exchange for compensation without being subordinate to or acting as an agent for the employer. It is permissible for the contractor's commitment to executing the work to include materials supplied by them or by the employer.
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What is the warranty period (warranty year)?
A financial amount (5% of the contract value unless otherwise agreed upon) is withheld from the contractor's dues as a guarantee for the proper execution of the work for a period of one year (the warranty year) and is refunded upon final acceptance. Additionally, the contractor is fully responsible for any errors or structural defects for a period of ten years. It is preferable for the project owner not to make any modifications during the warranty year to avoid breaching the warranty terms.
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What is the Contractor’s Liability for Compensation in a Construction Contract?
The contractor is liable for any damage or loss resulting from their actions, whether the damage is due to negligence or not.
This liability includes any defects in buildings or structures that threaten the strength and safety of the construction. The liability period lasts for ten years from the date of the project’s handover.
Contractors and consultants cannot be exempted from this liability, and any clause that states otherwise is considered void. However, liability is waived if the damage or loss results from an unforeseeable accident.
Claims for liability are not accepted after three years from the occurrence of the collapse or the discovery of the defect, in accordance with Article 883 of the Civil Transactions Law.
For more information and legal consultations on the rights of employers in construction contracts, contact us.
For more information about our legal services, do not hesitate to contact our team of skilled lawyers and legal consultants specializing in all areas of law and litigation in the United Arab Emirates or visit us at one of our branches in the cities of Al Ain and Abu Dhabi.
