The rights and limitations of employer to terminate construction contracts in UAE

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The British University in Dubai (BUiD)
The United Arab Emirates constitutes one of the most pronounced construction industries. Evidence of this lies in the large number of extensive, highly complex and ambitious structures under construction in the country. The success of these construction projects, however, is attributable to malpractice by project developers in the country who misuse their contractual right to terminate for convenience. Contracts used in the construction sector are one-sided since they favor the employer more than it does the contractor. Despite this practice, the UAE civil code provides for the rights of each party to terminate the contract. The intent of this dissertation is to identify these rights and unveil how the employers in the UAE abuse this power for their benefit but at the expense of the contractor. As the source of the contract’s funding, the employer’s exposure to risk is high. Following the downturn of 2007-2008 which crippled many projects, employers are not willing to expose themselves to such risks that threaten the very survival of the employer’s business.
construction industry, United Arab Emirates (UAE), construction contracts, law