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Can a client deposit a security cheque due to site delays, despite 50% of the work being done?

Hello,

I am currently employed as a subcontractor to work on a project in Dubai.

As a general practice, I have provided a security cheque against the advance payment, and the client is now threatening to deposit the cheque even after completing more than 50% of the works due to various delays on site.

Is this legal? What steps can I take to protect myself?

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Ibrahim Al Banna Advocates & Legal Consultants
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2 Jun 2025, 08:44

Thank you for your message!

Under UAE law, while it is common practice to issue security cheques in contracting relationships, such cheques must not be misused as a tool for coercion, especially if the delays are not solely attributable to the subcontractor.

If you have already completed a substantial portion of the work and there are valid reasons for delays beyond your control, the client's threat to deposit the cheque could be considered abusive and may expose them to civil or even criminal liability.

To protect yourself, you should immediately document all site conditions, correspondence, and causes of delay, particularly those beyond your scope or control.

It is also advisable to send a legal notice asserting your position before the cheque is misused, and if necessary, seek a precautionary court order to stop its encashment.

This matter requires urgent legal intervention to prevent financial and reputational damage. I strongly recommend we schedule a legal consultation to review your contract, timeline records, and project documentation so we can take immediate protective steps on your behalf.

Please feel free to reach out to me directly on WhatsApp or phone at [--------------] to discuss further and book your legal consultation.

Best regards,

Suhail Rana

Advocate & Legal Consultant

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