The Building Construction Contract Agreement is a fundamental legal document used in the United Arab Emirates for managing construction projects of various scales. It serves as the primary agreement between the project owner (employer) and the construction company (contractor), establishing the legal framework for project execution under UAE law. This document is essential when undertaking any significant construction work in the UAE, whether for commercial, residential, or industrial purposes. It incorporates crucial elements such as scope of work, payment terms, timelines, quality standards, and compliance requirements with UAE construction regulations, building codes, and environmental standards. The agreement also addresses specific UAE requirements regarding labor laws, insurance, and dispute resolution mechanisms, making it particularly suited for construction projects within the UAE jurisdiction. It includes detailed schedules and appendices covering technical specifications, drawings, and project-specific requirements.
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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: Definitions of key terms and rules for interpreting the agreement
4. Scope of Works: Detailed description of the construction works to be performed by the Contractor
5. Contract Price and Payment Terms: Amount payable, 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. Employer's Obligations: Responsibilities including site access, permits, approvals, and payment obligations
9. Quality and Standards: Required quality standards, inspections, testing procedures, and acceptance criteria
10. Variations: Procedures for changes to scope, pricing of variations, and approval process
11. Health and Safety: Safety requirements, procedures, and compliance with UAE safety regulations
12. Insurance and Indemnities: Required insurance coverage and mutual indemnification provisions
13. Defects Liability: Defects notification period, remediation procedures, and warranties
14. Suspension and Termination: Rights and procedures for suspension and termination of the contract
15. Force Majeure: Events constituting force majeure and consequential rights and obligations
16. Dispute Resolution: Procedures for resolving disputes, including arbitration under UAE law
17. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction provisions
1. Performance Security: Requirements for performance bonds or guarantees, used for high-value projects
2. Advance Payment: Terms for advance payments and related securities, optional based on project financing structure
3. Nominated Subcontractors: Provisions for employer-nominated subcontractors, if applicable
4. Environmental Compliance: Specific environmental requirements, particularly for projects with significant environmental impact
5. Green Building Requirements: Sustainability requirements, mandatory for certain emirates or project types
6. Equipment and Materials Supply: Specific provisions for employer-supplied materials or equipment
7. Testing and Commissioning: Detailed testing requirements for complex mechanical/electrical installations
8. Intellectual Property Rights: IP provisions where design or innovative construction methods are involved
9. Site Security: Additional security requirements for sensitive or high-security locations
1. Schedule 1 - Works Specification: Detailed technical specifications of the construction works
2. Schedule 2 - Site Plans and Drawings: Architectural, structural, and other technical drawings
3. Schedule 3 - Project Program: Detailed timeline, milestones, and critical path schedule
4. Schedule 4 - Price Schedule and Bill of Quantities: Detailed breakdown of prices and quantities
5. Schedule 5 - Payment Schedule: Milestone-based payment schedule and payment procedures
6. Schedule 6 - Quality Assurance Plan: Detailed quality control procedures and requirements
7. Schedule 7 - Health and Safety Plan: Detailed safety procedures and requirements
8. Schedule 8 - Performance Specifications: Performance criteria and testing requirements
9. Schedule 9 - Forms of Bonds and Guarantees: Ƶ for required bonds and guarantees
10. Schedule 10 - Insurance Requirements: Detailed insurance specifications and coverage requirements
11. Appendix A - List of Approved Subcontractors: Pre-approved subcontractors for specific work packages
12. Appendix B - Permits and Licenses: Copies of relevant permits and licenses
13. Appendix C - Environmental Management Plan: Environmental protection and compliance procedures
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