The Property Development Contract is a crucial document used in the United Arab Emirates real estate sector when undertaking new development projects or major property renovations. It serves as the primary agreement between developers and property owners/employers, establishing their respective rights and obligations. This contract type is essential for projects ranging from residential and commercial developments to mixed-use properties, incorporating UAE federal and emirate-specific real estate laws. The document typically includes detailed construction specifications, project timelines, payment structures, quality standards, and compliance requirements with local building regulations. It becomes particularly important in major development hubs like Dubai and Abu Dhabi, where strict regulatory oversight requires comprehensive contractual documentation. The agreement must align with UAE Civil Code requirements and relevant property laws, while also addressing specific requirements from authorities such as RERA (Real Estate Regulatory Agency) where applicable.
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1. Parties: Identification of the developer and property owner/employer, including full legal names and addresses
2. Background: Context of the development project, including property details and development objectives
3. Definitions and Interpretation: Detailed definitions of technical and legal terms used throughout the contract
4. Scope of Works: Detailed description of the development project, including nature and extent of works
5. Contract Price and Payment Terms: Payment structure, amounts, milestones, and payment procedures
6. Project Timeline: Development schedule, key milestones, completion dates, and handling of delays
7. Developer's Obligations: Comprehensive list of developer's responsibilities and commitments
8. Employer's Obligations: Rights and responsibilities of the property owner/employer
9. Quality and Standards: Required quality standards, materials specifications, and compliance requirements
10. Variations and Changes: Procedures for handling changes to scope, specifications, or timeline
11. Testing and Completion: Inspection procedures, acceptance criteria, and completion certificates
12. Defects Liability: Defects liability period, warranty terms, and remediation procedures
13. Insurance and Indemnities: Required insurance coverage and indemnification obligations
14. Force Majeure: Definition and handling of force majeure events
15. Termination: Grounds and procedures for contract termination
16. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
17. Notices: Communication procedures and contact details
18. General Provisions: Standard boilerplate clauses including assignment, waiver, and severability
1. Environmental Compliance: Required for projects with significant environmental impact, detailing environmental protection measures
2. Community Impact: For projects in populated areas, addressing community relations and impact mitigation
3. Financing Arrangements: When project financing is involved, detailing funding conditions and requirements
4. Intellectual Property Rights: For projects involving unique designs or proprietary technology
5. Marketing and Branding: For commercial developments requiring specific marketing approaches
6. Phased Development: For large projects delivered in phases, detailing phase-specific requirements
7. Special Technical Requirements: For projects requiring specific technical expertise or methodologies
8. Government Approvals: When special government permits or approvals are required
9. Sustainability Requirements: For green buildings or sustainable development projects
1. Schedule 1 - Property Details: Detailed description of the property including title details and site plans
2. Schedule 2 - Scope of Works: Detailed technical specifications and drawings
3. Schedule 3 - Project Timeline: Detailed project schedule with milestones and critical dates
4. Schedule 4 - Payment Schedule: Detailed breakdown of payments, including milestone payments
5. Schedule 5 - Quality Standards: Specific quality requirements and applicable standards
6. Schedule 6 - Testing and Commissioning Procedures: Detailed procedures for testing and acceptance
7. Schedule 7 - Forms of Certificates: Ƶ for various certificates including completion certificates
8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and coverage requirements
9. Schedule 9 - Permits and Approvals: List of required permits and responsibilities for obtaining them
10. Appendix A - Site Layout Plans: Detailed site plans and drawings
11. Appendix B - Technical Specifications: Detailed technical requirements and specifications
12. Appendix C - Material Specifications: Specifications for construction materials
13. Appendix D - Environmental Impact Assessment: Environmental impact studies and mitigation measures
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