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Legal services

Construction and Infrastructure

Support across the project life cycle, from finance and design to completion and final account.

We advise employers, contractors, subcontractors, consultants and lenders on construction contracts and disputes in the UAE. Our focus is on practical solutions that keep the project moving and protect the client's position when it does not.

Overview

Construction in the UAE is fast, large and contract-driven. Most projects are built on FIDIC-based forms amended by the employer, with a chain of subcontracts flowing down from them, and the UAE Civil Code adds rules that cannot be contracted out of, including the ten-year decennial liability of the contractor and the designer for structural defects. Payment delays, variations, extensions of time and defects are the everyday sources of dispute, and the sums involved make arbitration before DIAC or ADCCAC the usual forum.

Khalifa Al Sada Advocates & Legal Consultants offers services throughout a project's life cycle, from the early stages of finance, development and design through implementation, construction and close-out. Our focus is on effective and creative solutions that minimise legal obstacles to the project goals.

Who we help

We act for:

  • Developers and employers, public and private
  • Main contractors and specialist subcontractors
  • Engineers, architects and project managers
  • Suppliers and equipment lessors
  • Lenders and insurers on construction projects
  • Owners facing defects after completion

We work on residential, commercial, hospitality, industrial and infrastructure projects of every scale.

What we do

At the front end we draft and negotiate construction, design, consultancy, subcontract and supply agreements, advise on FIDIC amendments and on the bonds, guarantees and insurances that support them. We review tender documents and letters of intent, and we advise on the licensing and approvals a contractor needs from the municipality and the free zone authorities.

During the project we advise on notices, variations, extension of time and prolongation claims, payment certificates and the enforcement or restraint of on-demand bonds. When disputes arise we represent clients in negotiation, adjudication and expert determination, in arbitration before DIAC, ADCCAC and the ICC, and before the UAE courts, including claims for unpaid certificates, wrongful termination, defective work and decennial liability. We work with delay and quantum experts, and we enforce awards and judgments against the counterparty's assets, including through our debt collection department for undisputed sums.

Why Khalifa Al Sada

Our lawyers combine common law training, which is where most standard forms come from, with the civil law experience needed to apply the UAE Civil Code to them. That matters when a clause on liability or termination reads one way in English and is applied another way by a UAE tribunal.

We work from Dubai and Abu Dhabi in Arabic and English, and our litigation and arbitration teams sit in the same office, so a project dispute is handled by lawyers who already know the contract.

What we do

  • Construction, design and consultancy agreements on FIDIC and bespoke forms
  • Subcontracts, supply and equipment hire agreements
  • Bonds, guarantees and construction insurance
  • Variations, extension of time and prolongation claims
  • Payment claims and enforcement of certificates
  • Termination, defects and decennial liability
  • Arbitration before DIAC, ADCCAC and ICC
  • Enforcement of construction awards and judgments

How we work

  1. 1

    Contract review

    We read the contract, the amendments and the correspondence and identify the notice requirements, time bars and risk allocation.

  2. 2

    Claim preparation

    We prepare the claim or the defence with the delay and quantum evidence the tribunal will expect.

  3. 3

    Resolution

    We negotiate, and if necessary arbitrate or litigate, in the forum the contract provides.

  4. 4

    Recovery

    We enforce the award or judgment and pursue the bond, the retention or the other assets available.

Frequently asked questions

Is decennial liability mandatory in the UAE?

Yes. Under the Civil Code the contractor and the supervising engineer are jointly liable for ten years for the collapse or serious structural defect of a building, and the liability cannot be excluded by contract.

Can a call on a performance bond be stopped?

On-demand bonds are paid against a compliant demand, but the courts can restrain a call that is clearly abusive or fraudulent. Speed is essential, so contact us before the demand is made if you can.

Are time-bar clauses enforced?

UAE tribunals often enforce notice requirements, though they may relieve a party in some circumstances. Serve the notices the contract requires and keep records.

Do we have to arbitrate, or can we go to court?

If the contract contains a valid arbitration clause the court will normally decline the case. We review the clause and advise on the forum before any step is taken.

Insights

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20 Jul 2023 4 min read

Arbitration in the UAE

Why parties increasingly choose arbitration over the courts, the arbitration institutions the UAE has built in Dubai and Abu Dhabi, and how our offices support clients before DIAC, ICC, DIFC and ADCCAC.

Read more

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