Construction Contract Termination Agreement

Construction Contract Termination Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

"I need a Construction Contract Termination Agreement for a mutual termination of a residential development project in Dubai, UAE, where the contractor has completed 60% of the works and both parties have agreed to part ways due to funding issues, with a planned termination date of March 15, 2025."

Document background

The Construction Contract Termination Agreement is a critical document used when parties need to formally end their construction contract relationship in the UAE, whether by mutual consent or due to specific circumstances outlined in the original contract. This agreement is essential for projects governed by UAE Federal Law No. 5 of 1985 (Civil Code) and must carefully address all aspects of the termination process, including financial settlements, work handover procedures, and mutual releases. It provides a structured framework for managing the termination process while ensuring compliance with UAE construction laws and regulations. The document typically includes detailed provisions for final accounts, retention release, equipment removal, documentation handover, and the resolution of any outstanding obligations or claims.

Suggested Sections

1. Parties: Identification of all contracting parties, including full legal names, addresses, and registration details

2. Background: Context of the original construction contract, key dates, project description, and reasons for termination

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Termination Effect and Date: Clear statement of termination and its effective date

5. Outstanding Works and Handover: Details of any incomplete works and the process for handover of the site and materials

6. Financial Settlement: Agreement on final account, including payment for completed works, retention release, and any termination payments

7. Return of Materials and Equipment: Process for returning contractor's equipment and unused materials

8. Documentation and Drawings: Requirements for handover of project documentation, as-built drawings, and other relevant records

9. Mutual Release and Waiver: Mutual release of claims and obligations, subject to specified exceptions

10. Confidentiality: Obligations regarding confidential information post-termination

11. Surviving Obligations: Identification of contract provisions that survive termination

12. Governing Law and Jurisdiction: Confirmation of UAE law as governing law and jurisdiction for disputes

Optional Sections

1. Subcontractor Assignment: Required when there are subcontracts to be assigned to the employer or new contractor

2. Warranty Obligations: Needed when addressing ongoing warranty obligations for completed works

3. Performance Bond and Guarantees: Include when dealing with existing bonds and guarantees that need to be addressed

4. Intellectual Property Rights: Required when there are significant IP rights in designs or other materials

5. Employee Matters: Necessary when addressing transfer or termination of project employees

6. Insurance Provisions: Include when specific insurance arrangements need to be addressed post-termination

7. Dispute Resolution: Optional detailed dispute resolution procedures beyond standard jurisdiction clause

Suggested Schedules

1. Schedule 1 - Original Contract Details: Details of the original construction contract and any amendments

2. Schedule 2 - Financial Statement: Detailed breakdown of final account, including payments made and outstanding

3. Schedule 3 - Completed Works Register: List of completed works and their acceptance status

4. Schedule 4 - Outstanding Works List: Detailed list of incomplete works and their status

5. Schedule 5 - Equipment and Materials Inventory: List of contractor's equipment and materials to be removed or transferred

6. Schedule 6 - Required Documentation: List of all documents, certificates, and warranties to be handed over

7. Schedule 7 - Form of Release: Template of mutual release document to be executed

8. Appendix A - Handover Protocol: Detailed procedures for site and works handover

9. Appendix B - Payment Schedule: Timeline and conditions for final payments and releases

Authors

Alex Denne

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Industrial Development

Residential Development

Engineering

Architecture

Project Management

Construction Finance

Relevant Teams

Legal

Construction

Commercial

Finance

Operations

Project Management

Risk Management

Contract Administration

Technical Services

Executive Leadership

Relevant Roles

Construction Manager

Project Director

Legal Counsel

Contract Manager

Commercial Director

Chief Executive Officer

Project Manager

Quantity Surveyor

Construction Director

General Counsel

Finance Director

Technical Director

Operations Manager

Site Manager

Risk Manager

Claims Manager

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