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Construction Law in the 21st Century

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Liquidated damages in the Middle East

A UAE perspective1

Introduction

The award of liquidated damages features as a common form of relief in construction disputes in the Middle East, including, more specifically, in the United Arab Emirates (UAE).2 Construction projects in the UAE are routinely governed by the FIDIC conditions of contract,3 which allow for the employer to recover liquidated damages for a contractor-caused delay to the time for completion.4 For the avoidance of doubt, for present purposes, liquidated damages are understood to be a contractual pre-estimate of monetary compensation payable to the employer for a contractor-caused delay to the time for completion.

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