Variation Order (Construction) (UAE)
VARIATION ORDER
Reference: [Variation Ref]
Date: [Issue Date]
Project: [Project Name]
Main Contract: [Main Contract Ref]
Employer: [Employer Name]
Contractor: [Contractor Name]
Engineer: [Engineer Name]
1. ENGINEER'S INSTRUCTION AND GOVERNING LAW
1.1 Pursuant to the variation clause of the Main Contract and Article 887 of the UAE Civil Code (Federal Law No. 5 of 1985), the Engineer instructs the Contractor to carry out the following Variation to the Works. Article 887 confirms that changes to a lump-sum contract are enforceable when agreed in writing; this Variation Order constitutes the written agreement required by that article.
1.2 The Contractor is instructed to proceed with this Variation immediately unless otherwise stated.
1.3 VAT at 5% is applicable to the Variation value under Federal Decree-Law No. 8 of 2017. The Contractor shall issue a valid UAE tax invoice for the Variation amount, bearing its Tax Registration Number (TRN) issued by the Federal Tax Authority (FTA).
2. DESCRIPTION AND TYPE OF VARIATION
2.1 Variation type: [Variation Type].
2.2 Description of Variation: [Variation Description].
2.3 Supporting documents: [Drawings Reference].
2.4 No Variation shall invalidate the Contract or relieve the Contractor of its obligations for work already executed.
3. VALUATION
3.1 Valuation status: [Valuation Status].
3.2 Value of this Variation: [Variation Value] (excluding VAT).
3.3 Adjusted Contract Price after this Variation: [Adjusted Contract Price] (excluding VAT).
3.4 Cumulative Variations to date: [Cumulative Variations].
3.5 Where the Variation value is marked 'Provisional sum — TBD', the Contractor shall submit a detailed substantiation within 21 days, and the Engineer shall determine the final value within 14 days thereafter. Pending agreement, the Contractor shall proceed on the basis of the provisional sum.
4. TIME IMPACT AND EXTENSION OF TIME
4.1 Extension of Time granted by this Variation Order: [Time Extension].
4.2 Revised contractual completion date: [Revised Completion Date].
4.3 If the Contractor considers that a longer extension of time is warranted, it must submit a formal claim within 28 days of this instruction in accordance with the Main Contract's claims notification procedure. Failure to submit within the time bar may extinguish the Contractor's right to a further extension.
4.4 Delay liquidated damages under the Main Contract shall continue to apply at the rate stated in the Main Contract for any delay beyond the revised contractual completion date set out above.
5. ACCEPTANCE AND SIGNATURES
5.1 This Variation Order is issued by the Engineer under authority granted by the Main Contract. The Contractor shall sign and return one copy to the Engineer within 7 days of receipt, confirming acceptance of the instruction and the agreed valuation and time impact.
5.2 Proceeding with the Variation works without signing this order constitutes deemed acceptance of the Variation instruction but not of the valuation or time extension, which remain subject to the Main Contract's determination process.
ISSUED by the ENGINEER: [Engineer Name]
ACCEPTED by the CONTRACTOR: [Contractor Name]
ACKNOWLEDGED by the EMPLOYER: [Employer Name]
Engineer (issuing)
________________
Signature
Contractor (accepting)
________________
Signature
Employer (acknowledging)
________________
Signature
What Is a Variation Order (Construction) (UAE)?
A Variation Order (Construction) in the United Arab Emirates is a formal written instruction issued by the Engineer (Contract Administrator) under a construction contract, directing the Contractor to carry out a change to the scope, design, quality, quantity, or sequence of the Works. Variation Orders — also called Variation Instructions (VIs) or Engineer's Instructions (EIs) in different contract forms — are the standard mechanism in UAE FIDIC-style and bespoke construction contracts for managing scope changes while preserving the integrity of the main contract. Article 887 of the UAE Civil Code (Federal Law No. 5 of 1985) confirms that changes to a lump-sum construction contract are only enforceable as payment obligations against the Employer where they have been agreed by the owner, and UAE courts, including the Dubai Courts and the Abu Dhabi Judicial Department, consistently require written Variation Orders as the vehicle for that agreement.
The Variation Order records: the type of change (addition, omission, substitution, specification change, or sequence change); a precise description of the varied scope with reference to drawings and specification sections; the agreed or Engineer-determined value of the change in AED (exclusive of VAT); the Extension of Time granted for programme impact; the revised Contract Price after the variation; and the cumulative total of all variations to date. VAT at 5% under Federal Decree-Law No. 8 of 2017 applies to the variation value, and the Federal Tax Authority (FTA) requires the Contractor to issue a compliant tax invoice for each Variation payment.
The Commercial Transactions Law (Federal Decree-Law No. 50 of 2022) governs the commercial obligations flowing from a Variation Order, including the Employer's obligation to pay the agreed variation sum within the contractual payment period and the right to interest on overdue amounts under Art. 76 at the Central Bank of the UAE rate. The Federal Arbitration Law (Federal Law No. 6 of 2018) governs disputes about Variation Order valuations that are referred to DIAC arbitration — the Dubai International Arbitration Centre — which is the leading institution for UAE construction disputes and has a specialist construction panel of arbitrators experienced in FIDIC conditions under UAE law.
Variation Order management is a critical discipline on UAE construction projects. The Abu Dhabi Judicial Department and DIAC arbitration panels hear hundreds of construction disputes annually in which the central issue is whether additional works were properly instructed as a Variation or fell within the original scope of the Contract. The forms-legal.com UAE Variation Order (Construction) template provides a legally sound, commercially complete, and administratively rigorous framework for recording each change in a form that is enforceable before UAE courts and arbitral tribunals.
When Do You Need a Variation Order (Construction) (UAE)?
A Variation Order (Construction) in the United Arab Emirates is needed whenever the Engineer instructs a change to the scope, design, specification, or sequence of the Works during the construction programme, and the parties require a written, enforceable record of that change that will support payment and time claims and be accepted as evidence in UAE court or DIAC arbitration proceedings.
Architectural and structural design changes are the most common trigger for Variation Orders on UAE commercial and residential projects. Employer-initiated changes — upgrading specifications, adding amenity spaces, reconfiguring layouts after planning permit amendments from Dubai Municipality or the Abu Dhabi Department of Municipalities and Transport — must be instructed as formal Variation Orders so that the Contractor can price and programme the additional work.
Authority-required changes generate Variation Orders when the UAE Civil Defence Authority, DEWA, ADDC, Dubai Municipality, or Abu Dhabi DMT requires design changes during construction — for example, requiring upgraded fire protection in response to a changed building use, or requiring additional drainage capacity after a utility survey reveals different site conditions. These changes are typically not the Contractor's responsibility and generate both a Variation Order for payment and an Extension of Time claim.
Value engineering changes — where the Employer or Engineer proposes substituting specified materials or systems for technically equivalent alternatives at lower cost — require Variation Orders to record the omission of the original specification and the addition of the substitute. The savings from value engineering are typically shared between the Employer and the Contractor under a mechanism specified in the main contract.
Omissions of scope — where the Employer decides not to proceed with part of the original scope, perhaps deleting an ancillary building or reducing the landscaping package — must be processed as Variation Orders to formally remove the omitted items from the Contractor's obligations and adjust the Contract Price downward. Without a formal omission Variation Order, the Contractor may claim it is still obliged (and entitled to be paid for) the original scope, creating a dispute at the final account stage before DIAC or the Dubai Courts.
What to Include in Your Variation Order (Construction) (UAE)
A UAE Construction Variation Order that is legally enforceable under Art. 887 of the UAE Civil Code (Federal Law No. 5 of 1985), accepted by DIAC arbitration panels, and recognised by the Dubai Courts and the Abu Dhabi Judicial Department as a valid written agreement on the varied scope must contain the following key elements. The forms-legal.com UAE Variation Order template addresses each component in a structured, authoritative format.
Variation reference and date must assign a unique sequential reference number to the Variation Order (e.g., VO-2026-007) and state the issue date in DD/MM/YYYY format. The reference number creates a coherent register of all variations on the project and enables cross-referencing in the final account.
Project and contract identification must record the project name and address, the main contract reference, and the full legal names of the Employer, Contractor, and Engineer. These details contextualise the Variation Order within the main contract and confirm that the Engineer is acting under the authority granted by that contract.
Variation description must identify the type of Variation (addition, omission, substitution, specification change, or sequence change) and describe the varied works with precision, referencing the specific drawings, specification sections, and engineer's instructions that define the scope. Imprecise descriptions create disputes about what is included in the VO value.
Valuation status must record whether the value is an agreed lump sum, a Bill of Quantities rates calculation, an Engineer's determination, or a provisional sum. The value must be stated in AED excluding VAT, with the calculation basis attached. The adjusted Contract Price after all variations to date must be recorded.
Extension of Time must state the number of calendar days granted for this Variation and the revised contractual completion date. If no extension is granted, that should be stated explicitly so there is no ambiguity.
Time bar notice must warn the Contractor that any further claim for time or money beyond what is stated in this VO must be notified within 28 days, and that failure to notify may bar the claim.
Signatures of the Engineer (issuing), the Contractor (accepting), and ideally the Employer (acknowledging) confirm the written agreement required by Art. 887 of the UAE Civil Code.
How to Fill Out Your Variation Order (Construction) (UAE)
Completing a UAE Construction Variation Order requires the Engineer to assemble the technical and commercial information needed to define the varied scope, value the change, and assess the time impact before issuing the instruction.
Start with the project and contract details. Enter the project name and site address, the main contract reference, and the full legal names of the Employer, Contractor, and Engineer. Assign the next sequential Variation Order reference number in the project's VO register. Enter the issue date in DD/MM/YYYY format.
In the variation description section, select the variation type — addition, omission, substitution, specification change, or sequence change. Write a precise description of the varied works, referencing drawings and specification sections by revision and document number. If multiple drawings are referenced, list all of them. The description must be specific enough that both the Employer and the Contractor know exactly what work is included in the VO scope and what is excluded.
In the valuation section, select the status — agreed lump sum, BoQ rates, Engineer's determination, or provisional sum. Enter the value in AED excluding VAT. Calculate the adjusted Contract Price by adding the variation value to the previous Contract Price (or deducting for omissions). Record the cumulative total of all variations to date as a running total.
In the time impact section, enter the Extension of Time granted in calendar days. Calculate and enter the revised contractual completion date in DD/MM/YYYY format. If no extension is granted, enter 'Nil — no extension of time awarded for this Variation' to eliminate ambiguity.
Issue the Variation Order to the Contractor with the supporting drawings and documents. The Contractor should sign and return one copy within 7 days, confirming acceptance of the instruction and the valuation. If the Contractor accepts the instruction but disputes the valuation or extension, it must serve written notice within 28 days setting out the basis for its additional claim.
File the signed Variation Order in the project document control system as the primary record of this change for the final account and for any DIAC arbitration or UAE court proceedings.
Legal Requirements for Variation Order (Construction) (UAE)
A Variation Order (Construction) in the United Arab Emirates is subject to the following statutory framework.
The UAE Civil Code (Federal Law No. 5 of 1985) is the primary source. Article 887 governs lump-sum construction contracts and requires that variations from agreed plans be accepted by the owner to create a payment obligation. Article 879 governs the Engineer's supervisory authority. Articles 282 and 389 provide the basis for compensation claims where variations cause additional loss. Article 390 permits courts to adjust agreed liquidated damages. Article 246 requires good faith in the performance of all contractual obligations, including the variation process.
The Commercial Transactions Law (Federal Decree-Law No. 50 of 2022) governs payment obligations arising from Variation Orders, including the Contractor's entitlement to payment within the contractual period and interest on overdue amounts under Art. 76 at the Central Bank of the UAE rate.
The Commercial Companies Law (Federal Decree-Law No. 32 of 2021) requires each signatory — the Engineer, the Contractor's representative, and the Employer's representative — to hold authority to bind their respective entities. An Engineer who issues Variation Orders without authority from the Employer may expose both the Engineer and the Employer to liability.
Federal Decree-Law No. 8 of 2017 on VAT requires 5% VAT on all taxable Variation Order supplies, and the Contractor must issue a compliant FTA tax invoice for each Variation payment, with the Contractor's Tax Registration Number (TRN).
The Federal Arbitration Law (Federal Law No. 6 of 2018) governs arbitration clauses applicable to Variation valuation disputes. The Electronic Transactions and Trust Services Law (Federal Decree-Law No. 46 of 2021) validates electronic Variation Orders, digital signatures, and email instruction records.
Common Mistakes to Avoid in Your Variation Order (Construction) (UAE)
Variation Order management on UAE construction projects is the most common source of construction disputes, and the following mistakes consistently generate cases before the Dubai Courts and DIAC arbitration panels.
1. Carrying out extra work without a written instruction. The most expensive mistake in UAE construction is performing additional work in response to an oral instruction without a written Variation Order. Article 887 of the UAE Civil Code (Federal Law No. 5 of 1985) requires written agreement for variations to lump-sum contracts. DIAC panels have consistently denied additional payment to contractors who could not produce a written instruction for the extra work.
2. Missing the 28-day time bar. Failure to serve written notice of a claim for additional time or money within 28 days of a Variation Order is a bar to the claim in most UAE construction contracts. Contractors must maintain a formal change management register tracking every instruction date and the corresponding notice deadline.
3. Vague scope description in the VO. A Variation Order that describes the scope as 'additional works as discussed' without specifying drawings and specification sections creates disputes about what is included in the VO value. Every VO must reference specific documents with revision dates.
4. No time impact assessment. Issuing a Variation Order with a stated value but stating 'nil extension of time' without conducting a critical path analysis can prejudice the Contractor's ability to claim a realistic EOT if the Variation is on the critical path. Programme analysis should accompany complex Variations.
5. Not recording the adjusted Contract Price. Failing to update the running Contract Price in each Variation Order makes the final account process much harder and can lead to disputes about cumulative scope changes, particularly where the total variation exceeds the threshold requiring the Employer's separate approval.
6. Failure to obtain Employer's approval for large Variations. Most UAE main contracts require the Employer's prior written approval for variations above a defined threshold (e.g., 10% or 25% of the Contract Price). Engineering issuing large Variation Orders without Employer approval may exceed the Engineer's authority, exposing the Employer to unforeseen cost without its consent and creating a liability dispute between the Employer and the Engineer.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Variation Order (Construction) (UAE) (United Arab Emirates) [Legal document template]. Forms Legal. https://forms-legal.com/uae/business/contracts/variation-order-construction-uae
"Variation Order (Construction) (UAE) (United Arab Emirates)." Forms Legal, 2026, https://forms-legal.com/uae/business/contracts/variation-order-construction-uae.
@misc{formslegal-variation-order-construction-uae,
author = {{Forms Legal}},
title = {Variation Order (Construction) (UAE) (United Arab Emirates)},
year = {2026},
howpublished = {\url{https://forms-legal.com/uae/business/contracts/variation-order-construction-uae}},
note = {Free legal document template. Based on UAE Civil Code (Federal Law No. 5 of 1985), Art. 887 (lump-sum contract variations)}
}Frequently Asked Questions
Article 887 of the UAE Civil Code (Federal Law No. 5 of 1985) governs lump-sum construction contracts and provides that if the work is executed at a global price based on plans agreed with the building owner, the contractor may not demand any increase in the price on account of any variation or addition made to those plans unless those variations were agreed with the owner. UAE courts, including the Dubai Courts and the Abu Dhabi Judicial Department, interpret this provision to require that variations to lump-sum contracts be recorded in writing and accepted by the employer before the contractor has a contractual right to additional payment.
In FIDIC-style construction contracts adapted for the UAE, the variation clause typically requires the Engineer to issue a formal written Variation Order (or Variation Instruction) before the Contractor is obliged to carry out additional works and before the Contractor is entitled to additional payment. An Engineer's oral instruction to vary the scope creates an obligation to execute the varied works — because the Contractor must follow the Engineer's instructions under the main contract — but does not automatically create a payment entitlement until the instruction is confirmed in writing.
DIAC arbitration panels and the Dubai Courts have consistently held that a Contractor who carries out additional works without a written Variation Order and without a time-barred written claim has a diminished basis for recovering additional cost, though equitable doctrines under the Civil Code may provide some relief where the employer clearly received the benefit of the additional works. The practical lesson is clear: contractors must insist on written Variation Orders before commencing varied work, and employers must not provide oral instructions that could be later characterised as Variation instructions without a formal order.
Variations to a UAE lump-sum construction contract are priced using a hierarchy of valuation methods, typically specified in the main contract's variation clause and aligned with Art. 887 of the UAE Civil Code (Federal Law No. 5 of 1985).
The first and preferred method is to apply the rates and prices in the Bill of Quantities for work of a similar character executed under similar conditions. Where the Variation involves work that is clearly described in the Bill of Quantities and carried out under comparable conditions, the BoQ rate applies directly. This method is straightforward and minimises valuation disputes.
Where no applicable BoQ rate exists, the parties (Contractor and Engineer) may agree a new rate by analogy — deriving it from a comparable BoQ item by adjusting for the differences in materials, labour, plant, or conditions. New agreed rates must be recorded in the Variation Order.
Where agreement on rates cannot be reached, the Engineer makes a 'fair determination' of the value, based on reasonable costs and a reasonable profit margin, consistent with the UAE Civil Code principle of fair compensation for work performed. The Contractor may challenge the Engineer's determination through the dispute resolution mechanism of the main contract — typically 28 days' notice followed by DIAC arbitration.
For Omissions (work removed from the scope), the BoQ rates typically govern the deduction, and the Contractor may also be entitled to claim preliminaries and overhead costs where the omission is large enough to disrupt the programme. UAE courts have held that a deduction at BoQ rates may not fully reflect the Contractor's actual savings where the omission is ordered late and preliminaries have already been incurred.
All Variation values are exclusive of VAT, and VAT at 5% under Federal Decree-Law No. 8 of 2017 is added on each invoice issued by the Contractor to the Federal Tax Authority (FTA) standard.
A time bar in a UAE construction contract is a contractual requirement that the Contractor must give written notice of a claim for additional time (Extension of Time) or additional payment within a defined number of days of the event giving rise to the claim — typically 28 days in FIDIC conditions. Failure to serve the notice within the time bar either bars the claim entirely, or in some contract forms, reduces the claim to the actual loss demonstrably caused by the failure to notify.
Time bars are strictly enforced by DIAC arbitration panels and the Dubai Courts in UAE construction disputes. In the landmark approach taken by UAE construction arbitrations, a Contractor who failed to give timely notice of an Extension of Time claim arising from a Variation instruction lost the right to extend the contractual completion date, even where the Variation was legitimate and clearly caused programme delay. The Contractor remained exposed to delay liquidated damages for the delay period that would have been covered by the time-barred extension claim.
For Variation Orders specifically, the time bar typically applies to: (a) the Contractor's claim for additional time beyond the extension granted in the Variation Order; and (b) the Contractor's claim for additional cost beyond the valuation stated in the Variation Order. If the Contractor accepts the Variation Order but believes the valuation or the extension is inadequate, it must preserve its rights by giving written notice within 28 days of receiving the Variation Order, setting out the basis for its claim for more time or more money.
The UAE Civil Code (Federal Law No. 5 of 1985) does not expressly impose time bars — these are contractual provisions — but Art. 246 requires parties to perform obligations in good faith, and Art. 247 provides the exception of non-performance. Courts balance strict enforcement of time bars against the good faith principle, but consistent UAE and DIAC case law favours enforcement of clear contractual notice periods.
An Engineer or Contract Administrator in the United Arab Emirates has broad authority to instruct Variations under a FIDIC-style construction contract, including additions that increase the contract price, subject to any limits on variation authority stated in the main contract. However, UAE law and contract law principles impose practical limits on the extent of permissible variations.
Article 887 of the UAE Civil Code (Federal Law No. 5 of 1985) governs lump-sum contracts: variations from agreed plans are permitted if agreed by the owner. This means the Employer — not merely the Engineer — must ultimately agree to variations that substantially change the scope or cost, particularly if the main contract requires the Employer's prior consent for variations above a defined threshold (commonly 10% or 25% of the original contract price).
For very large variations — particularly those that increase the contract price by more than 25-30% — UAE courts and DIAC arbitration panels may look beyond the contractual variation clause to assess whether the cumulative effect of variations constitutes a fundamentally new contract that should have been separately tendered. The Abu Dhabi Judicial Department has held in some construction cases that extreme scope change can amount to a novation of the original contract, potentially affecting VAT treatment and the validity of the original performance security.
The Contractor also has the right to object to a Variation that it reasonably considers impossible to execute, or that would require resources or technology not available in the UAE within the contract programme. Under standard FIDIC conditions, the Contractor must notify the Engineer promptly of any objection, stating the grounds, and the Engineer must respond. An unresolved objection is a dispute to be referred to DIAC arbitration or the agreed forum.
A Contractor in the United Arab Emirates who carries out additional work beyond the contract scope without a formal Variation Order risks not being paid for that work, even if the Employer clearly received its benefit. Article 887 of the UAE Civil Code (Federal Law No. 5 of 1985) requires that variations to a lump-sum contract be agreed with the owner, and the Dubai Courts have held that a contractor who carries out unauthorized additional works cannot recover the full cost of those works under the contract's pricing mechanism.
However, UAE law provides limited equitable remedies. A Contractor who performed additional works at the Employer's request, evidenced by site instructions, meeting minutes, or email exchanges from the Engineer, may recover on a quantum meruit basis — reasonable cost for work actually performed — under the principle of unjust enrichment in Art. 318 of the UAE Civil Code, provided the Employer clearly accepted and used the benefit of the additional works.
Quantum meruit recovery in UAE courts is typically lower than the contract rate recovery because the court assesses 'reasonable cost' rather than the contract rate plus overhead and profit margin. The Contractor must present detailed evidence — daily records, material delivery notes, labour allocation sheets, and contemporaneous correspondence showing the instruction came from the Engineer or Employer — to support a quantum meruit claim.
The practical lesson for contractors in the UAE: maintain a robust change management system, insist on written instructions for all changes before commencing the varied work, and issue a written notice within 28 days if an oral instruction cannot be confirmed in time. DIAC arbitration panels consistently emphasise that documentary discipline in Variation management is the most important factor in the success or failure of construction claims in the UAE.
The final account on a UAE construction contract is a comprehensive statement of all sums owed by the Employer to the Contractor at the end of the project, incorporating all agreed Variation Orders, agreed omissions, extension of time entitlements, liquidated damages deductions, retention releases, and any outstanding claims. The final account process is governed by the main contract's final account clause and by Articles 872-896 of the UAE Civil Code (Federal Law No. 5 of 1985).
All Variation Orders issued during the contract period — whether additions, omissions, or substitutions — are included in the final account with their agreed or Engineer-determined values. Provisional sums included in earlier Variation Orders are converted to final sums once the actual costs are substantiated and agreed. The final account also includes the valuation of any variations that were instructed verbally and then confirmed, and any claims for prolongation costs or acceleration instructions.
The final account is typically prepared by the Contractor and submitted to the Engineer for review and certification. The Engineer must certify the final account within the period stated in the main contract — typically 28-42 days — and issue the Final Payment Certificate. The Employer then pays within the contractual payment period.
Disputes about the final account are among the most common construction disputes in the UAE, and DIAC arbitration is the standard mechanism for resolving them. Unresolved Variation Order valuations, time bar disputes, disputed omission values, and retention withholding disputes are all final account issues that must be exhausted through the main contract's dispute process before DIAC arbitration can commence. Well-maintained Variation Order records — each VO signed by the Engineer and acknowledged by the Contractor — dramatically reduce the scope for final account disputes.
A Variation Order in the United Arab Emirates can affect the delay liquidated damages (DLDs) position in two ways: by extending the Time for Completion (reducing or eliminating the LD exposure for the added period), and by changing the Contract Price against which the DLD cap (typically 10% of the Contract Price) is calculated.
Where a Variation Order grants an Extension of Time, the contractual completion date is revised by the number of calendar days specified in the Variation Order. Delay liquidated damages do not accrue during the extended period granted. The Contractor must still meet the revised completion date — DLDs accrue for any further delay beyond the revised date at the rate stated in the main contract.
Where the Contractor believes the time extension granted is insufficient — for example, a Variation adds 4 weeks of work to the critical path but only 2 weeks of extension is granted — the Contractor must give notice of its additional time claim within 28 days of the Variation Order and submit a contemporaneous programme analysis demonstrating the critical path impact. DIAC arbitration panels require detailed delay analysis — typically a Time Impact Analysis (TIA) — to assess the Contractor's entitlement to extension of time beyond what the Engineer granted.
The DLD cap calculation is affected by Variation Orders that change the Contract Price. Where Variations have substantially increased the Contract Price — for example, from AED 45 million to AED 55 million — the 10% cap on DLDs increases from AED 4.5 million to AED 5.5 million, unless the main contract specifies that the cap is calculated on the original Contract Price only. The wording of the DLD cap provision in the main contract must be checked carefully, as the Abu Dhabi Judicial Department and DIAC panels have decided cap calculations differently depending on whether the cap clause references the 'original' or 'adjusted' Contract Price.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
Found an error? Let us knowRelated Documents
You may also find these documents useful:
Construction Contract (FIDIC-Style) (UAE)
A FIDIC-style lump-sum construction contract for UAE projects, incorporating muqawala provisions under Arts 872-896 of the UAE Civil Code (Federal Law No. 5 of 1985), Art. 880 decennial liability, VAT under Federal Decree-Law No. 8 of 2017, and DIAC arbitration. Covers Employer, Contractor, Engineer, performance security, defects, and variations.
Construction Subcontract (UAE)
A back-to-back construction subcontract for UAE projects, flowing down obligations from the main contract under the UAE Civil Code (Federal Law No. 5 of 1985), Arts 872-896 muqawala. Covers scope, payment, retention, delay damages, decennial liability under Art. 880, and dispute resolution through DIAC or UAE courts.
Completion Certificate (Construction) (UAE)
A UAE Taking-Over / Completion Certificate issued by the Engineer under a FIDIC-style or bespoke construction contract, certifying practical completion, commencing the Defects Notification Period, triggering first-half retention release, and recording regulatory approvals (Dubai Municipality, Civil Defence, DEWA/ADDC). Governed by the UAE Civil Code (Federal Law No. 5 of 1985) Arts 872-896 and Art. 880.
Snagging & Defects Liability Agreement (UAE)
A UAE snagging and defects liability agreement executed after Taking-Over, documenting outstanding items and the Contractor's rectification obligations under the UAE Civil Code (Federal Law No. 5 of 1985). Covers the snag register, rectification period, retention release, third-party remedy rights, and Art. 880 decennial liability preservation.
MEP Works Contract (UAE)
A UAE MEP works contract for mechanical, electrical, and plumbing installation projects, covering design (where applicable), supply, testing, commissioning, and handover. Governed by the UAE Civil Code (Federal Law No. 5 of 1985) Arts 872-896, with Art. 880 decennial liability, DEWA/ADDC commissioning requirements, UAE Civil Defence NOC, and VAT under Federal Decree-Law No. 8 of 2017.