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Milestone

FIDIC / Legal Reference: FIDIC Red Book Clause 8.2 — Time for Completion

An intermediate completion date by which a particular element, phase, or section of the Works must be completed. Milestones may carry their own Delay Damages, bonus provisions, or programme obligations — making their definition and achievement a frequent source of dispute.

What it means in practice

Milestones are used to manage project delivery in phases, coordinate with the employer’s operational requirements, or provide programme progress checkpoints. Where a milestone carries Liquidated Damages, the contractor is exposed to those damages independently of any damages for overall completion delay.

The definition of what must be achieved to satisfy a milestone is often imprecise — which creates dispute about whether the milestone has been met. Contractors should seek clear definition of milestone criteria at contract stage.

Where disputes arise

Disputes arise over: whether the milestone has been achieved on the defined criteria; whether the employer’s actions delayed milestone completion; and whether milestone LDs cap the contractor’s liability or accumulate with overall completion LDs.

UAE Context

In UAE mixed-use development projects, milestones are commonly used to align construction delivery with staggered operator or tenant fit-out programmes.

Related terms

Milestone disputes and associated Delay Damages claims are handled by e-Basel as part of our construction claims advisory services across UAE projects.

Construction Claims Consultant UAE →

Search terms: milestone construction UAE  ·  construction milestone delay  ·  milestone liquidated damages  ·  FIDIC milestone completion  ·  construction milestone dispute

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