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Building Construction Agreement

Building Construction Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Building Construction Agreement

"I need a Building Construction Agreement for a 50-story luxury residential tower project in Dubai with a value of AED 500 million, with construction scheduled to commence in March 2025 and include specific provisions for sustainable building practices and LEED certification requirements."

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Document background
The Building Construction Agreement is a fundamental legal document used in the United Arab Emirates for managing construction projects of various scales. It serves as the primary contract between a project owner and a construction contractor, establishing their respective rights, obligations, and responsibilities throughout the construction process. This agreement is specifically tailored to comply with UAE Civil Code requirements, local building regulations, and construction industry standards. It typically includes detailed provisions for project scope, payment mechanisms, quality standards, timeline commitments, and dispute resolution procedures. The document is essential for any construction project in the UAE, providing legal protection for all parties while ensuring compliance with local laws and regulations. It incorporates necessary provisions for permits, warranties, and defect liability periods, making it suitable for both commercial and residential construction projects.
Suggested Sections

1. Parties: Identification of the Employer and Contractor, including full legal names and addresses

2. Background: Context of the agreement, including project overview and basis for engagement

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: Agreement on price, payment schedule, and payment mechanisms

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

7. Contractor Obligations: Detailed responsibilities of the contractor including quality standards, materials, and workmanship

8. Employer Obligations: Responsibilities of the employer including site access, permits, and approvals

9. Materials and Workmanship: Standards for materials and workmanship, including testing and approval processes

10. Variations: Procedures for handling changes to the scope of work

11. Health and Safety: Safety requirements and responsibilities

12. Insurance and Indemnities: Required insurance coverage and indemnification provisions

13. Defects Liability: Defects notification period and remediation procedures

14. Force Majeure: Provisions for unforeseen circumstances and their handling

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Procedures for resolving disputes, including applicable jurisdiction

17. Governing Law: Specification of UAE law as governing law and relevant jurisdictional matters

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, used for larger projects

2. Advance Payment: Terms for advance payments and their security, if applicable

3. Phased Completion: Provisions for sectional or phased completion, used in larger projects

4. Environmental Requirements: Specific environmental obligations beyond standard requirements

5. Local Content Requirements: Provisions regarding use of local materials or labor, if required

6. Liquidated Damages: Pre-agreed damages for specific breaches, particularly delay

7. Retention: Provisions for retention money and its release

8. Subcontracting: Terms governing subcontracting arrangements if permitted

9. Quality Assurance: Specific quality management requirements for complex projects

10. Site Security: Additional security requirements for sensitive locations

Suggested Schedules

1. Schedule 1 - Technical Specifications: Detailed technical requirements and specifications for the works

2. Schedule 2 - Drawings: Architectural, structural, and other technical drawings

3. Schedule 3 - Bill of Quantities: Detailed breakdown of quantities and prices

4. Schedule 4 - Project Timeline: Detailed construction schedule with milestones

5. Schedule 5 - Payment Schedule: Detailed payment terms, milestones, and amounts

6. Schedule 6 - Site Information: Details about the construction site and conditions

7. Schedule 7 - Required Permits and Approvals: List of required regulatory approvals and responsibilities

8. Schedule 8 - Key Personnel: List of key personnel from both parties with roles and responsibilities

9. Schedule 9 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees

10. Schedule 10 - Insurance Requirements: Detailed insurance requirements and coverage limits

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Laws
Architect
As-Built Drawings
Bill of Quantities
Certificate of Completion
Change Order
Commencement Date
Completion Date
Construction Documents
Construction Period
Contract Price
Contractor
Day
Defects Liability Period
Defects Notice
Delay Damages
Design Documents
Dispute
Employer
Engineer
Extension of Time
Final Completion Certificate
Force Majeure Event
Good Industry Practice
Governing Law
Intellectual Property Rights
Interim Payment Certificate
Materials
Method Statement
Milestone
Notice
Operation and Maintenance Manuals
Payment Application
Payment Certificate
Performance Security
Permits
Project
Project Manager
Project Schedule
Quality Assurance Plan
Retention Money
Site
Specifications
Subcontractor
Substantial Completion
Taking-Over Certificate
Technical Requirements
Termination Date
Time for Completion
Variation
Variation Order
Works
Working Day
Clauses
Interpretation and Definitions
Scope of Works
Contract Documents
Contractor's Obligations
Employer's Obligations
Project Timeline
Contract Price
Payment Terms
Variations
Quality and Standards
Materials and Workmanship
Testing and Inspection
Site Access and Conditions
Health and Safety
Environmental Protection
Permits and Approvals
Insurance
Indemnification
Performance Security
Warranties
Defects Liability
Extensions of Time
Delay Damages
Force Majeure
Suspension
Termination
Intellectual Property
Confidentiality
Assignment and Subcontracting
Notices
Records and Audit
Dispute Resolution
Governing Law and Jurisdiction
Limitation of Liability
Risk Allocation
Completion and Handover
Retention
Bonds and Guarantees
Change in Law
Compliance with Laws
Representatives and Personnel
Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Development

Hospitality

Healthcare

Education

Retail

Relevant Teams

Legal

Operations

Construction

Project Management

Finance

Procurement

Risk Management

Commercial

Technical

Compliance

Business Development

Relevant Roles

Project Manager

Construction Manager

Contract Manager

Legal Counsel

Chief Executive Officer

Chief Operating Officer

Site Engineer

Quantity Surveyor

Procurement Manager

Finance Director

Risk Manager

Commercial Director

Technical Director

Operations Manager

Project Development Manager

Compliance Officer

Industries
UAE Civil Code (Federal Law No. 5 of 1985): Primary legislation governing contracts, including construction contracts, contractor obligations, and general contractual principles
UAE Commercial Transactions Law (Federal Law No. 18 of 1993): Regulates commercial transactions and business relationships between parties involved in construction projects
UAE Labor Law (Federal Law No. 8 of 1980): Governs employment relationships, worker safety, and labor rights in construction projects
UAE Building Codes and Standards: Technical specifications and requirements for construction works, including safety standards and building specifications
Environmental Law (Federal Law No. 24 of 1999): Regulations regarding environmental protection during construction activities
Municipality Building Regulations: Local emirate-specific building regulations and permits requirements
UAE Fire and Life Safety Code of Practice: Safety requirements and standards for fire prevention and protection in buildings
Federal Law No. 2 of 2015 on Commercial Companies: Relevant for understanding the legal structure of contracting entities and their capabilities
UAE Registration and Licensing Laws: Requirements for contractor registration and licensing in the construction sector
UAE Public Health and Safety Laws: Regulations concerning public health and safety during construction activities
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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