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General Construction Agreement for United Arab Emirates

General Construction Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the terms and conditions between an employer (project owner) and a contractor for the execution of construction works. This document details the scope of work, payment terms, timelines, quality standards, and obligations of all parties involved, while ensuring compliance with UAE federal laws and local emirate regulations. It includes provisions for variations, dispute resolution, and liability allocation, specifically tailored to meet UAE construction industry requirements and local business practices.

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General Construction Agreement

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What is a General Construction Agreement?

The General Construction Agreement is a fundamental document used in the UAE construction industry to establish a legally binding relationship between a project owner and a contractor. This agreement is essential for any construction project in the UAE, whether residential, commercial, or infrastructure-related. It must comply with UAE Civil Code requirements, particularly regarding Muqawala (construction) contracts, and incorporate local emirate-specific regulations. The document typically includes detailed provisions for project execution, payment mechanisms, quality standards, dispute resolution, and risk allocation. It's particularly important to note that this agreement must address specific UAE requirements such as local licensing, municipality approvals, and environmental regulations. The agreement serves as the primary reference document throughout the construction phase and defects liability period, protecting the interests of all parties involved while ensuring project delivery according to UAE standards.

What sections should be included in a General Construction Agreement?

1. Parties: Identification and details of the Employer and Contractor, including trade licenses and legal status

2. Background: Context of the agreement and brief project overview

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Contract Price and Payment Terms: Financial terms, payment schedule, and payment mechanisms

6. Project Timeline: Commencement date, completion date, and key milestones

7. Contractor Obligations: Detailed responsibilities and obligations of the contractor

8. Employer Obligations: Detailed responsibilities and obligations of the employer

9. Materials and Workmanship: Quality standards and specifications for materials and work

10. Variations: Procedures for handling changes to the scope of work

11. Health and Safety: Safety requirements and protocols

12. Insurance and Indemnities: Required insurance coverage and indemnification provisions

13. Defects Liability: Defects notification period and remediation procedures

14. Force Majeure: Provisions for unforeseen circumstances and their handling

15. Termination: Grounds and procedures for contract termination

16. Governing Law and Dispute Resolution: Applicable law and dispute resolution mechanisms

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a General Construction Agreement?

1. Performance Security: Requirements for performance bonds or guarantees, used for higher-value projects

2. Advance Payment: Terms for advance payments and their security, included when advance payments are required

3. Subcontracting: Rules and procedures for subcontracting, needed when subcontracting is permitted

4. Site Conditions: Specific provisions about site conditions and access, important for complex sites

5. Environmental Protection: Additional environmental requirements, necessary for environmentally sensitive projects

6. Local Content Requirements: Provisions for local content and Emiratisation, required for government projects

7. Intellectual Property: IP rights and obligations, relevant for projects involving design elements

8. Liquidated Damages: Pre-agreed damages for specific breaches, used in time-sensitive projects

What schedules should be included in a General Construction Agreement?

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

2. Schedule 2 - Project Program: Detailed timeline and milestone dates

3. Schedule 3 - Price Schedule: Detailed breakdown of contract price and bill of quantities

4. Schedule 4 - Payment Schedule: Payment milestones and procedures

5. Schedule 5 - Site Information: Site details, access points, and existing conditions

6. Schedule 6 - Key Personnel: List of key personnel from both parties

7. Schedule 7 - Forms and Certificates: Template forms for various project procedures

8. Schedule 8 - Insurance Requirements: Detailed insurance specifications

9. Schedule 9 - Health and Safety Requirements: Detailed safety procedures and requirements

10. Schedule 10 - Quality Assurance Requirements: Quality control procedures and standards

Authors

Alex Denne

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

Cost

Free to use
Relevant legal definitions




















































Clauses











































Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Development

Hospitality

Healthcare

Education

Retail

Government Infrastructure

Energy

Transportation

Relevant Teams

Legal

Commercial

Operations

Procurement

Finance

Project Management

Engineering

Risk & Compliance

Technical

Construction

Business Development

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Contract Manager

Legal Counsel

Commercial Director

Chief Executive Officer

Operations Director

Procurement Manager

Cost Controller

Quantity Surveyor

Site Engineer

Project Engineer

Risk Manager

Technical Director

Finance Director

Compliance Officer

Business Development 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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