e-Basel Consultancy — Reference
Construction Glossary
75 essential terms covering FIDIC contracts, delay analysis, claims, dispute resolution, and UAE construction law — with the dispute angle and clause references professionals actually need.
75
Terms
8
Categories
FIDIC
1999 & 2017
UAE
Context
75 terms
A — Contract Administration
12 terms
Contractor’s Notice of Claim
The contractual gateway to all FIDIC entitlements. Miss the 28-day deadline and the claim is extinguished regardless of its merits.
FIDIC Clause 20.1 / 20.2
Engineer’s Determination
A formal decision by the Engineer on a claim. The Engineer’s dual role — employed by the employer while required to act impartially — is persistently contested.
FIDIC Clause 3.5 / 3.7
Taking Over Certificate
TOC
The certificate that stops Delay Damages and starts the DNP. One of the most commercially significant documents in the project lifecycle.
FIDIC Clause 10.1
Defects Notification Period
DNP
The post-handover period during which the contractor remains liable for defects. Runs from Taking Over — not from project completion.
FIDIC Clause 11
Performance Certificate
The final discharge of the contractor’s obligations. Triggers release of remaining retention. Employers sometimes withhold it as leverage in final account negotiations.
FIDIC Clause 11.9
Variation Order
VO
A formal instruction from the Engineer to alter the scope of Works. Comply first, claim payment afterwards — the FIDIC principle.
FIDIC Clause 13
Variation
Any alteration to the scope, character, quality, or quantity of Works instructed by the Engineer. The most frequently disputed issue in final accounts globally.
FIDIC Clause 13.1
Omission
Removal of work from the contractor’s scope. An employer cannot omit work simply to give it to another contractor — this constitutes a breach of contract.
FIDIC Clause 13.1(e)
Force Majeure
FM
An exceptional event beyond a party’s control preventing performance. Notice must be given within 14 days. Entitlement is limited to EOT — not additional payment.
FIDIC Clause 19 / 18
Daywork
Valuing Variation work on actual resources used. Unsigned Daywork sheets are one of the most common UAE final account disputes. Sheets must be submitted within 7 days.
FIDIC Clause 13.6
Clause 20 Claim
The procedural gateway to all contractor entitlements under FIDIC. Strict notice and substantiation requirements that, if missed, extinguish the claim entirely.
FIDIC Clause 20 / 20–21
Time Bar
The 28-day notice deadline that extinguishes claims permanently if missed. The most common defence deployed by UAE employers against contractor claims.
FIDIC Clause 20.1
B — Time, Delay & Programme
12 terms
Extension of Time
EOT
Extends the contractor’s Date for Completion when qualifying delay events occur. Does not automatically entitle the contractor to additional money — time and money are separate entitlements.
FIDIC Clause 8.4
Delay Damages
DD / LD
Pre-agreed sum payable by the contractor for each day of overrun. UAE courts have discretion to adjust excessive rates under Civil Code Article 390 — unlike English courts.
FIDIC Clause 8.7
Liquidated Damages
LDs
A pre-agreed breach remedy that eliminates the need to prove actual loss. Must represent a genuine pre-estimate of likely loss — not a penalty.
FIDIC Clause 8.7
Concurrent Delay
Where employer-risk and contractor-risk delay events overlap on the critical path simultaneously. The most contested analytical issue in UAE construction delay disputes.
SCL Protocol 2nd Ed.
Critical Path
CP
The longest sequence of activities determining the earliest possible completion date. Only delays to critical path activities give rise to Extension of Time entitlement.
FIDIC Clause 8.3
Float
Spare time in the programme before an activity becomes critical. The SCL Protocol position: float belongs to the project — not to either party exclusively.
SCL Protocol — Float Ownership
Time at Large
When employer prevention displaces the contractual completion date, the contractor’s obligation reverts to completing within a reasonable time — and Delay Damages cease to apply.
Common law / UAE Civil Code Art. 247
Prolongation Costs
Additional time-related costs incurred during employer-caused programme extensions. Separate from the EOT itself — must be substantiated by actual cost records.
FIDIC Clause 8.4 + 20
Acceleration
Speeding up construction activities — either instructed by the Engineer, or arising constructively when a legitimate EOT is wrongly refused and the contractor accelerates to avoid Delay Damages.
FIDIC Clause 8.6
Baseline Programme
The initial programme submitted at project start — the reference point for all delay analysis. Whether ‘accepted’ or merely ‘acknowledged’ by the Engineer is frequently disputed.
FIDIC Clause 8.3
As-Built Programme
Record Programme
Records the actual dates activities were started and completed. The primary factual record used in retrospective delay analysis — and often the most contested element of expert evidence.
SCL Protocol methodology
Delay Analysis
The process of identifying, quantifying, and attributing construction delays. Five SCL methodologies — TIA is the preferred method. Expert selection of methodology is itself contested.
SCL Protocol 2nd Ed.
C — Claims, Disputes & Resolution
10 terms
Dispute Adjudication Board
DAB / DAAB
Independent panel that makes immediately binding decisions on FIDIC disputes. Pay now, argue later. The 2017 edition upgraded the DAB to a standing DAAB with avoidance functions.
FIDIC Clause 20 / 21
Amicable Settlement
A 56-day mandatory attempt to settle before commencing FIDIC arbitration. A precondition to arbitration — not a formality. Failure to observe it may affect admissibility.
FIDIC Clause 20.5
Arbitration
Private adjudication producing a final, binding Award enforceable in 170+ countries. DIAC, ICC, and LCIA are the most commonly selected institutions for UAE construction disputes.
FIDIC Clause 20.6
Expert Witness
An independent specialist whose overriding duty is to the tribunal — not to the appointing party. Delay and quantum experts are most frequently appointed in UAE construction arbitrations.
Procedural / evidentiary role
Scott Schedule
A tabular document presenting disputed items side by side — claimant’s position, respondent’s position, tribunal determination. Standard in snagging disputes and final account proceedings.
Arbitration / litigation tool
Without Prejudice
WP
Protects genuine settlement communications from being used as evidence of liability. The label alone does not guarantee protection — the communication must be a genuine settlement attempt.
General legal principle
Loss and Expense
L&E
Financial loss arising from employer-risk matters that disrupted or prolonged the Works. JCT equivalent of FIDIC Cost + Profit. Each head of loss must be individually substantiated.
JCT / FIDIC Clause 20
Global Claim
A claim without direct causation links between specific events and specific losses. Strongly disfavoured by DIAC tribunals — frequently rejected in their entirety in UAE arbitrations.
Quantum methodology
Head Office Overheads
HOO
Central office costs attributable to a project — recoverable in prolongation claims. Hudson, Emden, or Eichleay formulae used. Must be substantiated by actual audited accounts.
FIDIC Cost — Clause 1.1.4.3
Adjudication
Rapid interim dispute resolution — binding immediately. No statutory adjudication in UAE (unlike UK). FIDIC DAB serves an equivalent function. DIAC’s expedited procedure takes ~45 days.
FIDIC DAB process
D — Drawings, Documents & Quality
8 terms
IFC Drawings
Issued for Construction
Drawings formally authorising construction to proceed. Late issue is a primary claim trigger under Clause 1.9 — particularly common where UAE authority approvals delay design freeze.
FIDIC Clause 1.9
As-Built Drawings
Record Drawings
A complete set of drawings revised to show the Works as actually constructed. A contractual obligation typically required before the Performance Certificate is issued.
FIDIC Clause 4.1.2
Snagging
Defect List / Punch List
Identifying minor outstanding works at handover. Over-snagging by employers — compiling extensive lists to delay the Taking Over Certificate — is a well-recognised UAE contractor grievance.
FIDIC Clause 10.1
Shop Drawings
Detailed fabrication drawings prepared by the contractor or supplier for Engineer review. Delayed approval gives rise to Clause 1.9 / Clause 20 notice entitlement.
FIDIC Clause 4.1
RFI
Request for Information
Formal written request for clarification or design information. A systematic RFI log is essential evidence in UAE delay claims — demonstrating the information gap and Engineer’s response performance.
FIDIC Clause 1.9 (equivalent)
Submittal
Any document, sample, or data submitted by the contractor for Engineer review before work proceeds. Includes shop drawings, material samples, method statements, and O&M manuals.
FIDIC Clause 4.1
Specification
Spec / Technical Specification
Defines the quality, standards, and performance requirements for materials and workmanship. Conflicts between the Specification and Drawings are among the most common UAE scope disputes.
FIDIC — Employer’s Documents
Method Statement
Describes how specific construction activities will be executed safely and effectively. If the Engineer requires a more expensive method without contractual justification, the difference may be a Variation.
FIDIC Clause 4.1
E — Payments, Costs & Finance
9 terms
Interim Payment Certificate
IPC
Monthly certificate triggering the employer’s payment obligation. Undercertification by the Engineer is one of the most common grievances in UAE construction — with significant cash flow impact.
FIDIC Clause 14.6
Final Payment Certificate
FPC
Closes the contract financial accounts. UAE projects commonly see FPC delays of several years on large infrastructure projects — leaving performance security running indefinitely.
FIDIC Clause 14.13
Retention
Percentage withheld as security for contractor obligations — typically 5%. Half released on Taking Over, half on Performance Certificate. Withholding beyond that is a breach of contract.
FIDIC Clause 14.3 / 14.9
Bill of Quantities
BOQ / BQ
Lists all items of work with estimated quantities and contract rates. In a remeasurement contract, actual quantities replace the tendered estimates — final price can differ significantly.
FIDIC Clause 12
Remeasurement
Measuring actual quantities executed on site to determine the final contract price. Where quantities exceed BOQ by 10%+, either party may require a new rate under Clause 12.3.
FIDIC Clause 12.1–12.3
Financing Charges
Interest payable when the employer fails to pay on time — accruing automatically without the contractor needing to prove actual financial loss. Often overlooked but significant on large delayed projects.
FIDIC Clause 14.8
Advance Payment
Interest-free mobilisation payment from employer to contractor — typically 10–15% of contract sum. Released against an Advance Payment Guarantee and repaid through IPC deductions.
FIDIC Clause 14.2
Preliminary Items
Prelims
Time-related and fixed costs of maintaining site presence. The split between fixed and time-related prelims is crucial to prolongation cost claims — and frequently under-analysed at tender stage.
Priced within BOQ
Performance Security
Performance Bond
Financial guarantee for contractor performance — typically 10% of contract sum. In UAE, unconditional on-demand guarantees are the norm — callable without proof of breach.
FIDIC Clause 4.2
F — Construction Process & Site
8 terms
Practical Completion
PC
JCT concept equivalent to FIDIC Taking Over. Achieved when Works are complete for all practical purposes — minor defects do not prevent it. Triggers cessation of Liquidated Damages.
JCT / FIDIC Clause 10.1
Milestone
An intermediate completion date with its own Delay Damages exposure. Vague milestone definitions — “substantial completion of Phase 1” — are a primary cause of UAE construction disputes.
FIDIC Clause 8.2
Sectional Completion
Separate completion dates and Delay Damages for defined Sections of the Works. Separate TOC and DNP for each Section. Delay analysis becomes more complex with multiple critical paths.
FIDIC — Appendix to Tender
Suspension
Temporary cessation of work — either instructed by the Engineer or initiated by the contractor for non-payment. Wrongful suspension by the contractor constitutes a repudiatory breach of contract.
FIDIC Clause 8.8 / 16.1
Termination
The most commercially serious event in a construction contract. Wrongful termination — purporting to terminate without the contractual trigger being met — amounts to repudiation of the contract.
FIDIC Clause 15 / 16
Unforeseeable
The threshold for physical conditions claims — not reasonably foreseeable by an experienced contractor at tender. UAE ground conditions (sabkha, caprock, fill) frequently satisfy this test.
FIDIC Clause 1.1.6.8
Physical Conditions
Adverse ground or sub-surface conditions not anticipated at tender stage, giving rise to EOT and cost entitlement under Clause 4.12. UAE coastal and reclaimed land projects generate significant claims.
FIDIC Clause 4.12
Fit for Purpose
FFP
A strict design obligation under Yellow and Silver Book contracts — stricter than reasonable skill and care. Most professional indemnity policies do not cover Fit for Purpose obligations.
FIDIC Yellow / Silver Book
G — Procurement, Contracts & Structures
8 terms
FIDIC
Fédération Internationale des Ingénieurs-Conseils
The dominant standard form contract suite in UAE construction. Red, Yellow, Silver, and Gold Books — 1999 and 2017 editions both in active use across UAE projects.
Rainbow Suite
EPC Contract
Engineering, Procurement & Construction
The contractor takes full responsibility for design, procurement, and construction. Maximum risk on the contractor — including design risk, cost risk, and programme risk.
FIDIC Silver Book
NEC Contract
New Engineering Contract
UK-origin collaborative contract used in some Abu Dhabi and UAE infrastructure projects. Compensation event regime and early warning procedure replace FIDIC’s Clause 20 mechanism.
NEC4
Novation
Transfer of a party’s contractual rights and obligations to a third party. Commonly used in UAE two-stage procurement to transfer consultancy agreements to the design-build contractor.
UAE Civil Code Arts. 316–320
Letter of Intent
LOI
Pre-contract authorisation to commence mobilisation work. Widely used in UAE construction. Disputes arise when the main contract is never executed while the contractor has already incurred significant cost.
Pre-contract document
Subcontract
Contract between main contractor and specialist who carries out part of the Works. Main contractor remains fully responsible to the employer — subcontract must flow down the Clause 20 notice regime.
FIDIC Clause 4.4
Nominated Subcontractor
NSC
A subcontractor pre-selected by the employer whose employment by the main contractor is required under the contract. Long lead-time NSC packages frequently create UAE programme interface disputes.
FIDIC Clause 5
Collateral Warranty
A direct contractual link between the contractor or consultant and a third party — funder, tenant, or purchaser. Increasingly requested in UAE commercial developments by international investors.
Common law / drafted document
H — UAE & Regional Context
8 terms
No Objection Certificate
NOC
Formal authority approval required at every stage of UAE construction — from DEWA, Civil Defense, municipality, telecoms, and roads authorities. NOC delays are the most common UAE EOT claim event.
UAE regulatory framework
Authority Approval
The multi-stage UAE process: Town Planning → External NOCs → Building Permit (Bina’ License). The most common source of employer-risk delay in UAE construction — giving rise to Clause 8.4 entitlement.
UAE regulatory framework
DIAC
Dubai International Arbitration Centre
The UAE’s leading construction arbitral institution. 2022 Rules introduced emergency arbitrator and expedited procedure. Absorbed the DIFC-LCIA in 2023. Most commonly specified in UAE contracts.
UAE arbitral institution
UAE Civil Code
Federal Law No. 5 of 1985
The primary legislation governing UAE construction contracts. Key provisions: decennial liability (Art. 880), penalty adjustment (Art. 390), prevention principle (Art. 247), Force Majeure (Art. 273).
Federal legislation
Decennial Liability
10-year strict liability for structural defects imposed on contractors and engineers under UAE law. Cannot be excluded by contract. A contractor who completed a UAE project 7 years ago may still be exposed.
UAE Civil Code Arts. 880–883
RICS
Royal Institution of Chartered Surveyors
The global professional body for quantity surveyors and property professionals. MRICS is the standard QS qualification on major UAE construction projects. RICS QSs frequently appointed as quantum experts.
Professional body
Prevention Principle
A party cannot take advantage of its own prevention of the other’s performance. If the employer prevents completion and the EOT mechanism fails to cover it, Time at Large results — extinguishing Delay Damages.
UAE Civil Code Art. 247
Milestone Payment
Payment triggered by achieving defined project milestones rather than monthly measurement. Common in UAE EPC and lump sum developer contracts. Vague milestone criteria are the primary source of disputes.
EPC / lump sum contracts
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e-Basel Consultancy provides construction claims advisory, FIDIC expert witness, delay analysis, and arbitration services across the UAE. If a term in this glossary relates to a dispute you are facing, we can help.