Construction Contracts
Draft and review construction contracts including FIDIC in the UAE. Fakher & Co covers scope, payment, delays, defects liability, and dispute resolution clauses.
Building Your Projects on a Foundation of Legal Certainty
Construction projects are inherently complex, involving significant financial investment, tight deadlines, and coordination between multiple parties, including developers, contractors, consultants, and subcontractors. The single most important document that governs this entire process is the Construction Contract. A well-drafted contract is essential to allocate risk, define responsibilities, and provide a clear framework for resolving issues before they escalate into costly disputes.
At Fakher & Co, our legal team has deep expertise in the construction industry. We specialize in drafting and reviewing Construction Contracts that are clear, comprehensive, and tailored to the unique requirements of your project, ensuring it is delivered on time, on budget, and with minimal legal friction.
The Importance of a Specialized Construction Contract
Given the high stakes of construction projects, relying on a generic contract template is a recipe for disaster. A specialized Construction Contract is critical to:
- Clearly Define the Project Scope: It provides a detailed description of the work to be performed, including plans and specifications, leaving no room for ambiguity.
- Allocate Risk: It clearly assigns responsibility for potential risks such as unforeseen site conditions, material price fluctuations, and project delays.
- Establish a Clear Payment Structure: It outlines the payment schedule, the process for certifying work, and the conditions for releasing payments, ensuring fair and timely compensation.
- Provide a Change Order Mechanism: It creates a formal process for managing and pricing any changes to the original project scope, preventing disputes over variations.
- Set a Framework for Dispute Resolution: It establishes a clear, multi-tiered process for resolving disputes, often starting with negotiation and mediation before escalating to arbitration or litigation.
Key Provisions in Our Construction Contracts
We have extensive experience with various standard forms of construction contracts, including FIDIC, and we customize each agreement to the specific needs of the project. Key elements we focus on include:
1. The Contract Documents Clearly identifying all the documents that form part of the contract, including the agreement itself, drawings, specifications, and bills of quantities.
2. Obligations of the Parties Detailing the specific responsibilities of the employer (developer), the contractor, and the engineer or consultant.
3. Time for Completion and Extension of Time Defining the project timeline, the conditions that would entitle the contractor to an extension of time, and the process for claiming such an extension.
4. Liquidated Damages for Delay Specifying the pre-agreed financial penalty that the contractor must pay for each day of delay beyond the agreed completion date.
5. Defects Liability Period Outlining the period after project completion during which the contractor is responsible for rectifying any defects in the work.
6. Taking-Over and Handover Procedures Defining the process and criteria for the employer to formally take over the project from the contractor.
7. Termination and Suspension Specifying the conditions under which either party can suspend work or terminate the contract.
Build with Confidence
A successful construction project starts with a solid legal foundation. Let the construction law experts at Fakher & Co provide you with a robust contract that protects your interests and paves the way for a successful project delivery.