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Commercial Construction Agreement

Commercial Construction Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Commercial Construction Agreement

"I need a Commercial Construction Agreement for a 20-story office building project in Dubai, UAE, with a project value of AED 500 million and construction period from March 2025 to December 2025, including specific provisions for green building certification and smart building technology integration."

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Document background
The Commercial Construction Agreement is a fundamental document used in the UAE construction industry to establish legally binding relationships between project owners and contractors. It is essential for any commercial construction project in the UAE, whether for office buildings, retail developments, industrial facilities, or other commercial structures. The agreement must comply with UAE Federal Laws, particularly the Civil Code and Commercial Transactions Law, as well as specific emirate-level regulations. It typically includes detailed provisions for project execution, payment mechanisms, quality standards, dispute resolution, and risk allocation, while incorporating local requirements for permits, warranties, and technical standards. This document is crucial for protecting all parties' interests and ensuring clear understanding of responsibilities throughout the construction process.
Suggested Sections

1. Parties: Identification of the employer/owner and contractor, including license and registration details

2. Background: Context of the project and relationship between the parties

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

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

5. Contract Price and Payment: Payment terms, schedule, and mechanisms including VAT considerations

6. Timeline and Completion: Project schedule, milestones, and completion requirements

7. Contractor Obligations: Key responsibilities including workmanship, materials, and compliance

8. Employer Obligations: Site access, permits, approvals, and other owner responsibilities

9. Variations: Process for managing changes to scope, price, or timeline

10. Quality and Inspection: Quality standards, testing requirements, and inspection procedures

11. Health, Safety and Environment: HSE requirements and compliance with UAE regulations

12. Insurance and Bonds: Required insurance coverage and performance bonds

13. Defects Liability: Defects notification period and remediation obligations

14. Force Majeure: Events beyond parties' control and their consequences

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Hierarchy of dispute resolution mechanisms including UAE jurisdiction

17. General Provisions: Standard boilerplate clauses adapted for UAE law

Optional Sections

1. Financing Arrangements: Required when project involves specific financing or escrow arrangements

2. Phasing and Sectional Completion: For projects with multiple phases or separate completion sections

3. Design Obligations: When contractor has design responsibilities (design-build contracts)

4. Advance Payment: When advance payments are part of the payment structure

5. Subcontracting: Detailed subcontracting terms when significant subcontracting is anticipated

6. Materials Storage: Specific requirements for materials storage and handling on large projects

7. Local Content Requirements: When project must comply with UAE local content requirements

8. Intellectual Property: For projects involving significant design or technological elements

Suggested Schedules

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

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

3. Schedule 3 - Project Timeline: Detailed program of works and milestone dates

4. Schedule 4 - Technical Specifications: Detailed technical requirements and standards

5. Schedule 5 - Drawings: Approved construction drawings and designs

6. Schedule 6 - Site Details: Site information, access points, and restrictions

7. Schedule 7 - Key Personnel: List of key personnel from both parties

8. Schedule 8 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees

9. Schedule 9 - Insurance Requirements: Detailed insurance specifications and requirements

10. Schedule 10 - Quality Assurance Plan: Quality control procedures and requirements

11. Appendix A - Required Permits and Licenses: List of required regulatory approvals

12. Appendix B - HSE Requirements: Detailed health, safety, and environmental requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions
























































Clauses







































Relevant Industries

Real Estate Development

Commercial Property

Industrial Construction

Retail Development

Hospitality

Healthcare Facilities

Educational Facilities

Office Buildings

Mixed-use Development

Infrastructure

Energy and Utilities

Manufacturing

Logistics and Warehousing

Relevant Teams

Legal

Commercial

Operations

Project Management

Construction

Development

Procurement

Risk Management

Finance

Technical

Quality Assurance

Business Development

Compliance

Relevant Roles

Construction Manager

Project Director

Commercial Director

Legal Counsel

Contract Manager

Project Manager

Chief Executive Officer

Chief Operating Officer

Development Director

Technical Director

Procurement Manager

Risk Manager

Finance Director

Operations Manager

Site Manager

Quality Assurance 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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