Construction Sub-Contract (Fixed Price, No Retention)


Construction Sub-Contract (Fixed Price, No Retention)

Basic Info

  • Applicable Region UAE
  • Available Languages
    English & Arabic
  • Document No 0000730
  • Version V 1.0
  • Last Updated 02-14-2024
  • Reviews 0
Document Summary

This subcontract establishes a contractual relationship between a main contractor and a subcontractor for the purpose of delivering certain construction and/or design works. The main contractor assigns his work and obligations specified in the main contract to the subcontractor. The employer of the main contract is not a party to this subcontract, however, the subcontractor is bound by the terms and conditions of the main contract and undertakes the same obligations towards the employer.


Pursuant to Article 890 of Federal Law No. 5 of 1985 on the Civil Transactions Law (as amended ), a contractor may assign the whole or part of the work to a subcontractor if there is no clause in the main contract on prohibition of subcontracting or the nature of the work does not require him to execute the work in person. In addition, the main contractor remains responsible towards the employer.

Article 891 of the Civil Transactions Law states that the subcontractor may not claim from the employer any dues of the main contractor, unless the latter refers him to the employer.

This subcontract contains the following sections:

  1. Definitions And Interpretation
  2. Scope of Works
  3. Subcontract Price and Payment Terms
  4. Instructions and Variations
  5. Commencement and Completion of the Subcontract Works
  6. Permits & Clearances
  7. Materials for the Subcontract Works & Drawings
  8. Site Safety
  9. Maintenance of the Subcontract Works
  10. Insurance
  11. Assignment of the Subcontract
  12. Subcontractor’s Default
  13. Termination of the Main Contract
  14. Compliance with Laws and Regulations
  15. Notices
  16. Force Majeure
  17. Other Terms and Conditions
  18. Termination
  19. Entire Agreement
  20. Waiver
  21. Severability
  22. Expenses
  23. Amendments
  24. Inspection of Site
  25. Warranty
  26. Intellectual Property Rights
  27. Mutual Confidentiality
  28. Indemnity
  29. Governing Law and Jurisdiction
  30. Counterparts

Appendix A - Scope of Works, Drawings and Technical Specifications

Appendix B - Programme or Implementation Plan

Appendix C – Quotation

Appendix D – Advance Payment Guarantee


This document is intended for use in the United Arab Emirates.


This document is provided for reference only and is not intended to be, and should not be considered, legal advice. Determinations about whether this document will be appropriate in your particular situation or jurisdiction should be made after consultation with a legal counsel. Kanoony will not assume any legal liability that may arise from the use of this document.

Before Execution

  • The information on this front page or contained in the headers and footers of this instrument are for guidance purposes only.
  • Please delete this front page together with the information contained in the headers, footers, and the endnotes prior to circulating this letter. Where square brackets […] and highlights are used in the document, it indicates that there is missing or incomplete information which will need to be incorporated prior to signature.
  • Please remove the square brackets and all highlighting prior to signature.