The Construction Subcontract is essential for delegating specialized construction works within larger projects in the UAE. It is used when a main contractor needs to engage specialized contractors for specific aspects of a construction project, such as mechanical, electrical, or structural works. The document must comply with UAE Federal Laws, including the Civil Code and Commercial Transactions Law, as well as emirate-specific construction regulations. It typically includes detailed provisions for work scope, payment mechanisms, performance standards, and risk allocation, while ensuring alignment with the main construction contract. This template is specifically designed for UAE jurisdiction and incorporates local legal requirements, industry practices, and standard protections for both main contractor and subcontractor.
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1. Parties: Identification and details of the Main Contractor and Subcontractor, including their legal status and registration details
2. Background: Context of the main contract, project details, and the basis for the subcontract arrangement
3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and hierarchy of contract documents
4. Scope of Works: Detailed description of the subcontract works, specifications, and standards to be met
5. Contract Price and Payment: Payment terms, milestone payments, retention, and payment procedures
6. Project Timeline: Commencement date, completion date, program requirements, and delay consequences
7. Subcontractor Obligations: Key responsibilities, performance standards, and compliance requirements
8. Main Contractor Obligations: Main contractor's responsibilities, including site access and coordination
9. Materials and Workmanship: Quality requirements, testing, and inspection procedures
10. Health, Safety and Environment: HSE requirements, compliance with regulations, and reporting procedures
11. Variations: Procedure for handling changes to scope, pricing, and timeline
12. Insurance and Indemnities: Required insurance coverage and indemnification obligations
13. Default and Termination: Events of default, termination rights, and consequences
14. Dispute Resolution: Dispute resolution procedures, governing law, and jurisdiction
15. General Provisions: Standard boilerplate clauses including notices, assignment, and severability
1. Performance Security: Requirements for performance bonds or guarantees - include when project value exceeds certain thresholds
2. Advance Payment: Terms for advance payment and recovery - include when advance payment is agreed
3. Design Obligations: Design responsibilities and warranties - include for design-build subcontracts
4. Equipment Supply: Equipment provision and maintenance terms - include when subcontractor supplies significant equipment
5. Intellectual Property: IP rights and licenses - include when design or innovative methods are involved
6. Local Content Requirements: Local content and Emiratisation obligations - include when required by main contract or law
7. Force Majeure: Force majeure events and consequences - include for longer-term or high-value contracts
8. Step-in Rights: Main contractor's right to step in - include for critical path works
9. Liquidated Damages: Pre-agreed damages for delay/performance failure - include when specific metrics are measurable
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Contract Price and Payment Schedule: Detailed breakdown of prices, rates, and payment milestones
3. Schedule 3 - Program of Works: Detailed timeline, milestones, and critical path activities
4. Schedule 4 - Site Rules and Regulations: Project-specific site requirements and procedures
5. Schedule 5 - Forms of Bonds and Guarantees: Ƶ for required security documents
6. Schedule 6 - Quality Assurance Requirements: Quality control procedures and standards
7. Schedule 7 - HSE Requirements: Detailed health, safety, and environmental requirements
8. Schedule 8 - Required Insurance: Details of required insurance coverage
9. Schedule 9 - Key Personnel: List of key personnel and their qualifications
10. Schedule 10 - Forms of Certificates: Ƶ for various certificates including completion certificates
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