Statutory notice obligations
Contractors must immediately inform employers of any factors that may hinder the normal progress of the works — a duty that now sits alongside the contractual notice regime.
Overview
Guidance through a transformed construction landscape
The UAE’s construction sector is undergoing a profound legal
transformation. With Federal Decree Law No. 25 of 2025 — the New Civil
Code — in force since 1 June 2026, the framework governing every
construction project has changed fundamentally.
FLC delivers full-spectrum legal services to developers, contractors,
consultants and investors across construction and infrastructure
projects of every type. We combine industry expertise with practical,
commercially oriented advice to help you navigate the new landscape and
meet your project objectives.
The new legal landscape
The New Civil Code
Established under Federal Decree Law No. 25 of 2025 and effective from 1 June 2026, the New Civil Code replaces the 1985 version — modernising the UAE's civil framework, strengthening contractual certainty and providing more robust safeguards for commercial activity.
Ten-year liability
A strict, mandatory and non-waivable obligation on contractors, engineers and architects, running for ten years from completion.
Variations & change orders
The owner's right to issue change orders is recognised, provided the change does not exceed the overall scope agreed in the contract.
01
Project contracting
Comprehensive legal services across the contractual chain of a
construction project, from main contract to subcontract.
- FIDIC contracts. Drafting, reviewing and negotiating FIDIC-based contracts (Red Book, Yellow Book, Silver Book), and reconciling their application with UAE law.
- Bespoke contracts. Construction, engineering and consulting service agreements tailored to the specific project.
- Subcontracts. Drafting and negotiating subcontract agreements with a workable allocation of risk.
- JVA & consortium agreements. Structuring joint venture and consortium arrangements for major projects.
- Performance security. Performance bonds, parent company guarantees and retention money arrangements.
02
Claims & disputes
We represent clients in construction claims of every type, whether
pursuing them or defending against them.
- Delay & disruption claims. Prolongation costs, disruption and extension of time claims.
- Variation & change order disputes. Claims arising from scope changes, pricing and authority to instruct.
- Payment disputes. Interim payment claims, final account disputes on completion and unpaid sums.
- Defect claims. Latent defects, ten-year liability and non-conforming works.
- Termination & suspension. Contractual and statutory termination rights, and suspension of the works.
03
FIDIC notices & time bars
Notice provisions are where most construction claims are won or lost
— often long before the merits are ever examined.
The 28-day rule
Contractors must submit a claim notice in accordance with FIDIC
requirements within 28 days of becoming aware of the claim event.
The New Civil Code adds a statutory duty to inform the employer
immediately of any other factors that may hinder normal progress —
and a contractor who fails to give that notice bears full
liability for the resulting losses.
- Notice compliance. Strict compliance with FIDIC notice and time bar provisions across the project.
- Contract and statute together. The interplay between contractual notice requirements and UAE law.
- New statutory duties. Advising on the notice obligations introduced by the New Civil Code.
04
Dispute resolution
We leverage our network of trusted local litigation partners to
deliver strategic dispute resolution across forums.
- Arbitration. Proceedings under the rules of DIAC, the ICC, the LCIA and arbitrateAD, with full-process capability across the UAE.
- Litigation. Oversight of the full process across courts of first instance, appeal and cassation.
- Mediation & ADR. Early resolution through mediation and expert determination.
Construction and real estate disputes account for the largest share
of arbitration caseloads — in DIAC’s 2023 caseload, nearly 60% of
cases involved such disputes. UAE courts generally uphold FIDIC
clauses, but apply local legal principles where contract terms
conflict with domestic law or public policy.
Insights & publications
Latest insights
UAE Labour Law 2026: fixed-term contracts
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