UAE Law and Practice Contributed by: Duncan Pickering, Nicola de Sylva and Sean Cope, DLA Piper Middle East LLP
7.2 Assigning Responsibility for the Design and Construction of a Project While there is no local standard suite for con - struction contracts in the UAE, many construc - tion contracts for major projects in the UAE are based on the industry standard form of con - tracts published by the International Federation of Consulting Engineers (FIDIC) (with appropriate project specific amendments), and such respon - sibility for design and construction is allocated contractually in accordance with standard inter - national practice, depending on the specific requirements of the project. 7.3 Management of Construction Risk The contractual devices included in the FIDIC standard forms of contract are typically used to manage risk allocation in the context of a construction project (however, the standard FIDIC conditions of contract are often amended by employers to transfer additional risk to the contractor). While the majority of the standard FIDIC provisions are generally viewed as being enforceable under UAE law, the Civil Code pro - vides that an agreement or a contractual provi - sion will be unenforceable if: • it conflicts with a mandatory provision of the law; • it is contrary to public order or morals; • it is performed in bad faith; or • a right is exercised in an unlawful manner (including where the benefit realised is dis - proportionate to the harm suffered by others, or where the interests sought to be realised conflict with Sharia). Any parts of an agreement that conflict with or are inconsistent with such mandatory provisions will either be rendered automatically void or will provide the courts with the power to adjust the
Compensatory Remedies These are any damages that the landlord may be entitled to as a result of the breach and/or termination, including accrued rights (such as unpaid rent, service charges, or other payments under the terms of the lease) and other damages (such as damages caused to the property over and above what may be covered by any security There may be specific notice requirements that apply for specific types of eviction (see 6.21 Forced Eviction ). 7. Construction 7.1 Common Structures Used to Price Construction Projects Pricing structures will vary according to the nature of the works. The most common pricing structures are: • lump sum – a pre-agreed sum that the contractor will be paid to perform the works under the construction contract; deposit). Eviction • measurement or unit price – whereby the work is measured and valued on the basis of a bill of quantities; • prime cost – payment is made for the costs of labour and materials used; and • cost plus – payment is made for the prime cost, plus an added percentage for profit. Payment is usually made against the certification of completed works by an engineer appointed by the employer.
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