Construction Claims & Arbitration UAE – FAQ

Filing a construction claim under a FIDIC contract in the UAE requires strict compliance with three elements: notice procedures, documentation standards, and contractual timelines.

Under FIDIC Sub-Clause 20.1, a contractor must issue a written Notice of Claim within 28 days of becoming aware of the event giving rise to the claim. A fully detailed submission must follow within 42 days, including:

• The contractual basis for entitlement
• A cause-and-effect analysis linking the event to the delay or cost
• Programme analysis demonstrating critical path impact (for EOT claims)
• Quantified additional costs with supporting records
• Contemporaneous documents: correspondence, site diaries, progress reports

Claims may seek an Extension of Time (EOT), additional payment, or both. Early specialist advice is strongly recommended before submitting any claim.

An Extension of Time (EOT) claim is a formal contractual request to extend the agreed completion date due to qualifying delay events — without incurring liquidated damages (LADs) for the extended period.

Under FIDIC contracts, EOT entitlement typically arises from: employer-caused delays, force majeure events, unforeseen physical conditions (Sub-Clause 4.12), exceptionally adverse weather, or changes in law.

Accepted delay analysis methods in UAE arbitration:

• Time Impact Analysis (TIA) — most widely accepted; models the prospective impact of each event on the programme
• As-Planned vs As-Built — useful baseline comparison
• Windows Analysis — granular, well-regarded by UAE tribunals
• Collapsed As-Built — retrospective “but-for” approach

Critically, only delays that affect the critical path qualify for EOT.

Under FIDIC Sub-Clause 20.1, a contractor must issue a written Notice of Claim within 28 days of the date they became aware — or should have become aware — of the event giving rise to the claim.

What happens if the deadline is missed?

• Under a strict reading of FIDIC, the contractor loses entitlement to both additional time and payment — regardless of the merit of the underlying claim
• UAE arbitral tribunals have generally upheld the 28-day time-bar as a condition precedent to entitlement
• Some tribunals consider whether the employer suffered prejudice from the late notice — but this is not a reliable defence
• The specific contract wording matters: some contracts modify or exclude the time-bar

Best practice: Issue the notice early — even before full quantification is possible. The notice identifies the event and asserts entitlement. The detailed submission follows within 42 days.

Both DIAC arbitration and UAE court litigation are valid routes for resolving construction disputes, but they differ significantly in process, speed, expertise, and enforceability.

For high-value, technically complex construction disputes in the UAE, DIAC arbitration is generally the preferred route.

Yes. Under FIDIC contracts, if an employer-caused event results in a critical path delay, the contractor is generally entitled to both an Extension of Time and prolongation costs for the additional period on site.

Prolongation costs typically include:

• Site overhead costs (management, supervisory staff, site offices)
• Standing equipment and plant costs
• Extended temporary works and utilities
• Finance and insurance charges during the extended period

To succeed in UAE arbitration, you must prove:

• An employer-risk event occurred (late instructions, employer variations, access delays)
• The event caused a delay to the critical path
• Actual additional costs were incurred as a direct result
• Those costs are substantiated by contemporaneous financial records

Lump-sum estimates without proper build-ups are routinely rejected by UAE tribunals.

A successful variation claim requires evidence on two fronts: entitlement (the right to claim) and quantum (the value).

To establish entitlement:

• Original contract drawings, specifications, and BOQ (to define original scope)
• Written Engineer’s Instruction or formal Variation Order
• Correspondence, RFIs, or meeting minutes confirming the instruction
• Revised drawings or specifications issued after contract date

To establish quantum:

• Detailed cost build-up for labour, materials, plant, and subcontractors
• Site records and timesheets confirming the work was carried out
• Supplier invoices and delivery records
• Comparison with contract rates where applicable (FIDIC Sub-Clause 13.3)

⚠️ Verbal instructions are a major risk. Always confirm in writing immediately and request formal written confirmation before proceeding.

Delay analysis is the technical process used in UAE construction arbitration to identify, quantify, and allocate responsibility for project delays between contractor and employer.

Accepted methods in UAE arbitration:

• Time Impact Analysis (TIA) — most widely accepted; models each delay event prospectively on the programme
• As-Planned vs As-Built — useful starting point; compares planned vs actual progress
• Windows Analysis — divides the project into time windows for granular analysis; well-regarded by UAE tribunals
• Collapsed As-Built (But-For) — retrospective approach; can be challenged as less reliable

A robust analysis must be supported by a contemporaneous baseline programme, regular updates, site diaries, and progress reports. The SCL Delay and Disruption Protocol is widely referenced as best practice in UAE proceedings.

An Engineering Expert Witness provides an independent technical opinion to help the tribunal understand complex engineering, construction, or quantum matters beyond general legal expertise.

Key responsibilities:

• Preparing a written Expert Report — technical facts, analysis, and independent opinion
• Attending hearings and giving oral testimony where required
• Being available for cross-examination by opposing counsel
• Participating in concurrent expert sessions (hot-tubbing) if ordered by the tribunal
• Reviewing and responding to the opposing expert’s report

⚠️ Critical principle: The expert’s duty is to the tribunal, not the appointing party. An expert who appears to advocate for their client’s position will lose credibility before the tribunal.

How to appoint an expert witness: Identify a qualified engineer with relevant sector experience and prior UAE arbitration exposure. Agree scope and terms of engagement, then submit the expert’s CV to the tribunal. Experts registered with DIAC carry additional credibility.

UAE Federal Arbitration Law No. 6 of 2018 is the primary legislation governing arbitration across the UAE (excluding DIFC and ADGM), aligned closely with the UNCITRAL Model Law.

Key provisions for construction disputes:

• Written arbitration agreement required — the clause must be in writing and clearly incorporated into the contract
• Court support available — UAE courts can assist with interim measures and tribunal constitution during proceedings
• Limited grounds for nullification — awards can only be challenged on narrow procedural grounds
• Streamlined enforcement — once ratified by a UAE court, an award has the force of a court judgment enforceable against UAE assets
• International enforcement — the UAE is a signatory to the 1958 New York Convention, allowing enforcement in 170+ countries

For disputes administered under DIAC rules, compliance with Law No. 6 of 2018 provides a clear and reliable path to enforcement — provided all procedural requirements are observed.

Many construction claims in UAE arbitration fail not because the underlying entitlement was absent, but because of avoidable procedural and evidential failures. The six most common reasons:

1. Missing the 28-day Notice of Claim deadline (FIDIC Sub-Clause 20.1). Issue the notice early — even before full quantification is possible.
2. Insufficient contemporaneous records. Site diaries, daily reports, programme updates, and correspondence must be maintained from day one.
3. Failure to demonstrate critical path impact. A delay that does not affect the completion date will not support an EOT or prolongation claim.
4. Poor cost substantiation. Every dirham claimed must be traceable to a source document — lump-sum estimates are routinely rejected.
5. No qualified technical expert. Claims involving complex engineering or quantum matters without independent expert support are at a serious disadvantage.
6. Failure to follow the dispute resolution ladder. Many FIDIC contracts require a DAB decision or Engineer’s decision before arbitration can commence. Skipping these steps can render the claim inadmissible.

Addressing these issues early — with specialist claims and legal support — significantly improves the prospects of a successful outcome.