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Construction Project Agreement

Construction Project Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Construction Project Agreement

"I need a Construction Project Agreement for a high-rise residential development in Dubai Healthcare City free zone, with a contract value of AED 500 million and construction completion scheduled for December 2025, including specific provisions for green building certification and phased handover."

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Document background
The Construction Project Agreement is a fundamental document for managing construction projects in the United Arab Emirates. It is used when parties need to establish a legally binding framework for construction works, typically involving a developer/employer and a main contractor. The agreement must comply with UAE Federal Laws, particularly the UAE Civil Code, and incorporate relevant emirate-specific construction regulations. This document includes detailed provisions for project execution, payment mechanisms, quality standards, dispute resolution, and risk allocation. It is particularly important in the UAE context due to specific local requirements regarding contractor classifications, municipality approvals, and environmental regulations. The agreement serves as the primary reference document throughout the project lifecycle, from groundbreaking to completion and defects liability period.
Suggested Sections

1. Parties: Identification and details of the contracting parties, including proper legal names and addresses

2. Background: Context of the agreement, project overview, and basis for the construction contract

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Works: Detailed description of the construction works to be performed

5. Contract Price and Payment Terms: Financial terms, payment schedule, variations, and payment mechanisms

6. Project Timeline: Construction schedule, milestones, completion dates, and extension provisions

7. Contractor Obligations: Detailed responsibilities and obligations of the contractor

8. Employer Obligations: Responsibilities and obligations of the employer/client

9. Quality and Standards: Required quality standards, inspections, and approval processes

10. Materials and Equipment: Specifications for materials, procurement requirements, and equipment standards

11. Health, Safety and Environment: HSE requirements and compliance with UAE regulations

12. Variations: Procedures for handling changes to scope, price, or timeline

13. Testing and Completion: Testing procedures, completion certificates, and handover requirements

14. Defects Liability: Defects liability period and remediation procedures

15. Insurance and Bonds: Required insurance coverage and performance bonds

16. Force Majeure: Force majeure events and their handling

17. Termination: Grounds and procedures for contract termination

18. Dispute Resolution: Dispute resolution mechanisms compliant with UAE law

19. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction

Optional Sections

1. Phasing and Sectional Completion: Used when the project requires completion in distinct phases

2. Subcontracting: Include when subcontracting is permitted, specifying conditions and approval requirements

3. Design Obligations: Required for design-build contracts where contractor has design responsibilities

4. Site Conditions: Include for projects with significant ground works or uncertain site conditions

5. Antiquities and Fossils: Required for projects in historically significant areas

6. Free Zone Specific Requirements: Include for projects within UAE free zones

7. Sustainable Development Requirements: Include for green building or sustainable development projects

8. Government Approvals: Detailed section when specific government permits are crucial

9. Financing Requirements: Include when project has specific financing conditions or requirements

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and scope description

2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of contract price and bill of quantities

3. Schedule 3 - Project Timeline: Detailed construction program and milestone dates

4. Schedule 4 - Technical Specifications: Detailed technical requirements and standards

5. Schedule 5 - Drawings: List and copies of all construction drawings

6. Schedule 6 - Site Information: Site details, surveys, and geological information

7. Schedule 7 - Key Personnel: List of key personnel and their responsibilities

8. Schedule 8 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees

9. Schedule 9 - Insurance Requirements: Detailed insurance specifications

10. Schedule 10 - Quality Assurance Plan: Quality control procedures and requirements

11. Appendix A - HSE Requirements: Detailed health, safety, and environmental requirements

12. Appendix B - Forms of Certificates: Templates for various certificates (completion, payment, etc.)

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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

Residential Development

Industrial Construction

Healthcare Construction

Education Facilities

Hospitality

Retail Development

Energy and Utilities

Transportation

Relevant Teams

Legal

Construction

Commercial

Operations

Project Management

Procurement

Risk Management

Technical

Finance

Business Development

Compliance

Contract Administration

Quality Assurance

Health and Safety

Relevant Roles

Construction Manager

Project Director

Contract Manager

Legal Counsel

Project Manager

Chief Executive Officer

Commercial Director

Technical Director

Development Manager

Quantity Surveyor

Site Engineer

Procurement Manager

Risk Manager

Finance Director

Operations Director

Construction Director

Legal Director

Head of Construction

Chief Operating Officer

Technical Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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