CONTEXT
If a contractor has stopped work before completion, retained a substantial advance payment, and the work performed does not meet contractual specifications, the employer has formal legal remedies — including judicial termination of the contract, recovery of overpayments, and compensation for the cost of engaging a replacement contractor. The strength of the claim depends heavily on technical documentation prepared before legal proceedings begin.
LEGAL BASIS
Federal Law No. 5 of 1985 on Civil Transactions (in force until 1 June 2026)
Dubai Law No. 13 of 2008 on Interim Real Estate Register (off-plan property only, as amended)
Dubai Law No. 8 of 2007 on Escrow Accounts for Real Estate Developments (off-plan property only)
TWO DISTINCT SCENARIOS
Scenario A — Private Construction or Renovation Contract
A contract between an employer and a private contractor for works on an existing property. Governed by the Civil Code provisions. Disputes are pursued through ordinary civil court proceedings.
Scenario B — Off-Plan Property Purchase from a Dev...