Q: Hello, My husband and I awarded one of Dubai's contractors to do renovation in our apartment. We paid him 50% in advance according to the contract signed between us. We paid another 20% after some time in response to his request to have an additional amount to buy the materials. The renovation was supposed to be completed in one month, yet, 2 months and a half already passed and the contractor has not even bought the material he promised (tiles, sanitary-ware... etc.). He promises but not delivering, postponing payments in all possible ways. Suppliers of the materials confirmed that payments had not been made by the contractor. We have a clause of damage liquidating (contractor needs to pay 1000 AED/day), but he doesn't seem to take it seriously. What is the best way to deal with this problem? If we take him to court, how much do we need to pay for the file opening? What damages he will experience - license termination? How quick can we have the money back? BR, J.

Q: I have signed a contract with a contractor to carry out AC works where the owner of the company has paid me cash with a payment voucher and he asked to provide a security deposit cheque. My scope of work was supposed to be finished in 45 days but delayed due to civil works for more than 4 months, in the interim we have continued to work and finished the works and started the equipment. Our final bill is linked with authority approvals which cannot be accomplished without civil works. I have asked the contractor to pay the VAT and amount for variation which he failed to do so. After 4 months the contractor called to resume the works where I have rejected as he failed to fulfil the contractual obligations. I've written a letter to the owner that I will take legal action if he misuses the cheque. The owner deposited my security cheque and filed a case. If I file a civil case against the owner, am I entitled to get losses incurred due to damaging my relation with the bank and other legal expenses?

Q: A Sub-Contractor (SC) holds/stops the work highlighting Article 246 & 247 [UAE Civil Code] due to payment delayed (Advance & Interim Payments) by the Main Contractor (MC). But the Main Contractor's concern is the document required to process Advance Payment [i.e. Advance Bank Guarantee - ABG] was not submitted on time & LC draft issued to SC was not agreed on time due to several arguments on some of its content. The MC paid the SC Advance Payment in 90 days from receipt of ABG highlighting the delay in reallocating the fund due to delay in ABG submission & LC draft agreement. Whose argument will withstand moving forward if MC intends to impose delay penalty on SC? Please advise. Thank you

Q: Dear Lawyer, We are 18 landowners 200 yards each entered into a development agreement with a builder on 2/2014. Then conditions are that the builder in his share of 50:50 can construct flats and sell. With a GPA fraudulently obtained, 18 months time with a grace period of 6 months to complete and handover fully furnished the flats. In case of delay, a rent of 6000 per month and 3 lakhs refundable deposit are to be paid to each landowner. The builder neither handed over the flats (60% built) nor paying rent or deposit of 3 lakhs. Electricity meters are fixed on our name and we are all paying minimum charges. The builder is not responding to our phone calls nor attending meetings whenever called for. The builder sold his share of flats. Please advise me the best. L.

Q: Good morning, Is it possible to file a suit in Dubai against a company from Italy that doesn’t complete the contract agreement? I am a resident of Dubai.

Q: Dear sir/madam, I engaged a general contractor to help renovate my apartment. It has now been over 4 months. I have major issues with the bathrooms (leaks, incorrect installation). In addition, he has used real cheap quality material which is scratched and has a horrible finish. Finally, I have a long list of items still not complete. He has been promising for the past 3 weeks that someone will come to review and correct but no one has come and every day I have a new excuse. I paid him 90% of the money as he talked a good game. I would welcome some advice on the best course of action to move forward.

Q: Dear Sir/Madam, I am looking for some advice. Twelve months ago, we hired a contractor to install a concrete pool. To date, we haven't been able to use the pool due to a leak. They keep trying to "fix" it, but I have no confidence in them anymore. Last week, another contractor came to the villa to look at it testing some of the fittings that I thought could be the reason. He removed some of the fittings and gave me a gut-wrenching comment. The concrete used for the pool is, in his opinion, "not good." What course of action can I take now? I obviously need to get the pool fixed, but I'm assuming the contractor won't accept liability. Can I involve the DM (Department of Municipality)?

An interview-format article covering the topic of contracts in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.