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Agreement Between Developer And Contractor for United Arab Emirates

Agreement Between Developer And Contractor Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the contractual relationship between a property developer and a main contractor for construction works. This document outlines the scope of works, payment terms, timelines, and obligations of both parties in accordance with UAE Civil Code and relevant emirate-specific construction regulations. It includes detailed provisions for quality control, variations, dispute resolution, and compliance with local building codes and safety standards, while incorporating specific UAE requirements for construction contracts including RERA regulations where applicable.

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What is a Agreement Between Developer And Contractor?

The Agreement Between Developer And Contractor is a fundamental document in UAE construction projects, essential for establishing the legal and operational framework between the property developer and the main contractor. This agreement is particularly crucial in the UAE's dynamic construction market, where it must comply with federal laws including the UAE Civil Code, as well as emirate-specific regulations such as Dubai's RERA requirements or Abu Dhabi's building codes. The document is typically used at the commencement of major construction projects, following tender award and before works begin. It includes comprehensive details about the project scope, payment mechanisms, timelines, quality standards, and risk allocation, while incorporating specific UAE requirements for construction contracts such as decennial liability and local licensing requirements. The agreement serves as the primary reference document throughout the project lifecycle, governing all aspects of the construction relationship.

What sections should be included in a Agreement Between Developer And Contractor?

1. Parties: Identification of the Developer and Contractor, including their full legal names, licenses, and registered addresses

2. Background: Context of the development project, brief description of the works, and basis for the agreement

3. Definitions: Comprehensive definitions of terms used throughout the agreement

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

5. Contract Price and Payment Terms: Fixed price or cost-plus arrangement, payment schedule, variations, and payment procedures

6. Project Timeline: Commencement date, completion date, milestones, and provisions for extensions of time

7. Contractor's Obligations: Key responsibilities including workmanship, materials, compliance with laws, and safety requirements

8. Developer's Obligations: Responsibilities including site access, permits, approvals, and provision of information

9. Quality Control: Standards, inspections, testing requirements, and approval procedures

10. Variations: Procedures for requesting, pricing, and executing variations to the works

11. Health and Safety: Safety requirements, procedures, and responsibilities

12. Subcontracting: Rules and procedures for appointing and managing subcontractors

13. Insurance and Indemnities: Required insurance coverage and mutual indemnification provisions

14. Defects Liability: Defects liability period, rectification procedures, and warranties

15. Termination: Grounds for termination, procedures, and consequences

16. Force Majeure: Definition of force majeure events and their consequences

17. Dispute Resolution: Dispute resolution procedures, governing law, and jurisdiction

18. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

What sections are optional to include in a Agreement Between Developer And Contractor?

1. Performance Security: Requirements for performance bonds or guarantees - include when project value exceeds certain threshold

2. Advance Payment: Terms for advance payment and recovery - include when advance payment is agreed

3. Design Obligations: Design responsibilities - include for design-build contracts

4. Intellectual Property: IP rights and licenses - include when design or proprietary methods are involved

5. Environmental Requirements: Environmental protection measures - include for environmentally sensitive projects

6. Local Content Requirements: Local content obligations - include when required by authorities

7. Value Engineering: Provisions for cost optimization - include for complex projects

8. Interface Management: Coordination with other contractors - include for multi-contractor projects

9. Testing and Commissioning: Detailed testing requirements - include for MEP or complex systems

10. Handover Procedures: Detailed handover requirements - include for phased developments

What schedules should be included in a Agreement Between Developer And Contractor?

1. Schedule 1 - Scope of Works: Detailed technical specification and scope description

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

3. Schedule 3 - Project Program: Detailed construction program with milestones

4. Schedule 4 - Site Information: Site details, access points, and restrictions

5. Schedule 5 - Developer Supplied Items: List of materials or equipment supplied by Developer

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

7. Schedule 7 - Forms of Bonds and Guarantees: Ƶ for required bonds and guarantees

8. Schedule 8 - Quality Control Plan: Detailed quality control procedures and requirements

9. Schedule 9 - HSE Requirements: Detailed health, safety, and environmental requirements

10. Schedule 10 - Forms of Payment Certificates: Ƶ for payment applications and certificates

11. Appendix A - Drawings: Complete set of construction drawings

12. Appendix B - Technical Specifications: Detailed technical specifications

13. Appendix C - Permits and Licenses: Copies of relevant permits and licenses

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Publisher

Ƶ

Cost

Free to use

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