The Building Contract Agreement is a fundamental document used in the United Arab Emirates construction industry to establish a legally binding relationship between a developer/employer and a contractor. This agreement is essential for any construction project in the UAE, whether residential, commercial, or industrial, and must comply with Federal Law No. 5 of 1985 (UAE Civil Code) and relevant emirate-specific building regulations. The document typically includes detailed specifications of construction works, payment structures, timelines, quality standards, and dispute resolution mechanisms. It is designed to protect both parties' interests while ensuring compliance with local construction practices, safety standards, and environmental regulations. The Building Contract Agreement serves as the primary reference document throughout the construction process, from groundbreaking to project completion and defect liability period.
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1. Parties: Identification and details of the Employer and Contractor, including their legal status and registered addresses
2. Background: Context of the agreement, including project overview and basis for entering into the contract
3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation
4. Scope of Works: Detailed description of the works to be performed, including reference to specifications and drawings
5. Contract Price and Payment: Payment terms, method of payment, retention amounts, and payment milestones
6. Project Timeline: Commencement date, completion date, project phases, and provisions for extensions of time
7. Contractor's Obligations: General and specific obligations including quality standards, workmanship, and compliance with laws
8. Employer's Obligations: Site access, permits, approvals, and other employer responsibilities
9. Materials and Workmanship: Standards for materials, testing requirements, and quality control procedures
10. Variations: Procedures for handling changes to scope, pricing of variations, and approval process
11. Health and Safety: Safety requirements, procedures, and responsibilities in accordance with UAE regulations
12. Insurance and Indemnities: Required insurance coverage and indemnification obligations of both parties
13. Defects Liability: Defects notification period, remediation procedures, and warranties
14. Suspension and Termination: Grounds and procedures for suspension and termination of the contract
15. Force Majeure: Definition of force majeure events and their consequences
16. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions compliant with UAE law
17. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction details
1. Performance Security: Requirements for performance bonds or guarantees, used for larger projects
2. Advance Payment: Terms for advance payment and related guarantees, if applicable
3. Subcontracting: Rules and procedures for subcontracting, needed if subcontracting is permitted
4. Equipment and Temporary Works: Provisions regarding construction equipment and temporary structures, for complex projects
5. Environmental Protection: Specific environmental requirements, needed for projects with significant environmental impact
6. Local Content Requirements: Provisions for local content and Emiratisation requirements, if applicable
7. Intellectual Property: IP rights and obligations, needed if design or innovative methods are involved
8. Confidentiality: Confidentiality obligations, for projects involving sensitive information
1. Schedule 1 - Scope of Works: Detailed technical specifications and description of the works
2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of the contract price and bill of quantities
3. Schedule 3 - Project Timeline: Detailed program of works including milestones and critical path
4. Schedule 4 - Key Personnel: List of key personnel from both parties and their roles
5. Schedule 5 - Forms of Guarantees: Templates for various guarantees and bonds
6. Schedule 6 - Technical Specifications: Detailed technical requirements and standards
7. Schedule 7 - Drawings: List and copies of all relevant drawings
8. Schedule 8 - Site Information: Details about the construction site and conditions
9. Schedule 9 - Insurance Requirements: Detailed insurance requirements and coverage levels
10. Schedule 10 - Forms of Certificates: Templates for various certificates including completion certificates
11. Appendix A - Required Permits and Licenses: List of required governmental and regulatory approvals
12. Appendix B - Health and Safety Requirements: Detailed health and safety procedures and requirements
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Commercial Property
Residential Property
Industrial Development
Hospitality
Healthcare Construction
Educational Facilities
Retail Development
Mixed-use Development
Relevant Teams
Legal
Construction
Operations
Commercial
Procurement
Project Management
Risk & Compliance
Technical Services
Development
Contract Administration
Relevant Roles
Construction Manager
Project Director
Commercial Director
Legal Counsel
Contract Manager
Development Manager
Site Engineer
Procurement Manager
Chief Operating Officer
Risk Manager
Technical Director
Operations Manager
Quantity Surveyor
Project Control Manager
Compliance Officer
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