Yes. Under UAE law, a party may claim damages if a contractor delays the handover of a project, provided that the delay constitutes a breach of the construction contract and results in actual, provable loss. Delay claims are common in construction disputes in Dubai and are assessed strictly on contractual terms and documentary evidence.
The starting point for any delay claim is the written construction contract. UAE courts place significant weight on the agreed completion date, project milestones, and any clauses dealing with extensions of time or liquidated damages. If the contract clearly specifies a handover deadline and the contractor fails to meet it without lawful justification, the contractor may be held liable for delay.
To succeed in a claim for damages, the claimant must establish three key elements:
- Breach of contract by the contractor
- Actual delay beyond the agreed completion date
- Direct loss suffered as a result of the delay
Losses may include additional rent, loss of rental income, financing costs, or other measurable financial harm. The claimant must demonstrate a direct causal link between the delay and the loss claimed. Speculative or indirect losses are generally not recoverable.
Many construction contracts include liquidated damages clauses, which set a pre-agreed daily or weekly penalty for delay. UAE courts will generally enforce such clauses unless they are found to be grossly disproportionate to the actual harm suffered. Courts also have discretion to reduce liquidated damages if they consider them excessive in light of the proven loss.
Contractors often defend delay claims by invoking force majeure, variations, or employer-caused delays. Courts examine whether such events were contractually recognized, properly notified, and genuinely beyond the contractor’s control. Failure to comply with notice requirements may weaken the contractor’s defense.
Expert evidence plays a critical role in construction delay disputes. Courts frequently appoint technical experts to assess project timelines, responsibility for delay, and financial impact. Well-prepared documentation, including correspondence, progress reports, and site records, significantly strengthens a claimant’s case.
Because construction disputes are complex and highly technical, early legal assessment is strongly advised. DY Lawyers and Legal Consultants regularly advises employers, developers, and contractors on delay claims, contract enforcement, and dispute resolution strategies, ensuring claims are presented effectively and in accordance with UAE law.
Disclaimer: The content in this article is provided for informational purposes only and does not constitute legal advice.