Unified UAE Legislation Database

FAQ: What should be done if a contractor has suspended works prior to completion, received a substantial advance payment, and the performed works do not comply with the contract terms and technical specifications?

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Relations between the employer and the contractor in the UAE are governed by the provisions on contracts for work (muqawala) of Federal Law No. 5 of 1985 (in force until 1 June 2026). In accordance with the general principles of the law of obligations, the contractor is required to perform the works in the agreed scope, within the specified time, and with a quality consistent with the contract terms and commercial practice. Unilateral refusal to perform without lawful grounds, as well as performance deviating from the agreed specifications, is regarded as a breach of contract and entails civil liability.

 

As a first step, the employer must record the actual condition of the project. In practice, this involves preparing a detailed inspection report, photo and video documentation of defects, deviations from the design, and the scope of works actually performed. It is advisable to engage an independent technical expert or licensed engineer to prepare an expert report on the...