When certified payments are delayed, variations are disputed or retention is withheld, a contractor's cash flow and ability to continue work can come under real pressure. MAX Legal Consultancy advises contractors, subcontractors, engineering consultants and suppliers in Dubai on construction payment disputes and the contractual steps available to protect their position.
Construction Payment Disputes
If an employer or main contractor is withholding progress payments, disputing approved variations or threatening to call a performance bond, the terms of the contract usually determine what you can do and when. Many contracts, including those based on FIDIC forms, set out payment timelines, notice requirements and, in some cases, a right to suspend or slow down work if certified sums remain unpaid. Depending on the contract and applicable UAE law, a contractor may be able to suspend work in these circumstances, usually after giving formal notice and subject to other conditions. We review your contract, payment certificates, variation approvals and notice history before any step is taken.
Matters We Advise On
Main contractors not paying subcontractors for certified or completed work
Unpaid or disputed variation claims
Release of retention money
Disputes over the calling of performance or advance payment bonds
Suspension of work for non-payment, where the contract and law allow it
Extension of time (EOT) claims and liquidated damages
Arbitration, including proceedings under the rules of the Dubai International Arbitration Centre (DIAC)
Recovery of unpaid sums on engineering and industrial projects
Why Notices and Timing Matter
Construction contracts often require claims and notices to be submitted within set periods. Missing a notice deadline, or proceeding without the engineer's determination where the contract requires one, can weaken or even bar a claim. Taking advice early helps you keep a complete record, document the cost and time impact of changes properly and preserve your position before a dispute is escalated to arbitration or the courts.
Who We Advise
We work with main contractors, specialist subcontractors, engineering consultants and material suppliers on residential, commercial and infrastructure projects in Dubai and across the UAE.
How We Approach Construction Disputes
We review the contract's notice and dispute clauses, the engineer's determinations, payment applications and certificates, and the correspondence between the parties before advising on the most practical route. Many disputes can be resolved through negotiation or structured settlement discussions. Where they cannot, we advise on and prepare claims for arbitration, such as under the DIAC rules, or for proceedings before the Dubai Courts, depending on the dispute resolution clause in your contract. Unpaid sums owed after a dispute is resolved can also be pursued through our debt recovery services.
Speak With Us About a Construction Dispute
If your business is dealing with withheld payments, unapproved variations or a contractual breach on a project, contact MAX Legal Consultancy for a confidential review of your documents and options.
Frequently Asked Questions
What can I do if a main contractor is not paying certified interim payments?
Check the payment and notice provisions in your subcontract first. Depending on the contract and applicable UAE law, options may include a formal payment demand, a notice of intention to suspend work, negotiation or a claim through the agreed dispute resolution process. Because notice periods and conditions vary, it is worth taking advice before suspending work or sending a formal notice.
Can you help subcontractors recover retention or variation claims?
Yes. We advise subcontractors on recovering retention and payment for approved or instructed variations, starting with the contract terms and the evidence of what was instructed, carried out and certified.
What documents are needed for a construction payment dispute?
The signed main contract or subcontract, payment applications and certificates, variation orders and instructions, delay and other notices, meeting minutes, and the correspondence showing when notices were given and received.
Can a performance bond call be stopped?
Bank guarantees such as performance and advance payment bonds are generally treated in the UAE as independent of the underlying contract, so the grounds for restraining a call are limited and depend on the facts. We can review the bond wording and the circumstances of the call and advise whether any challenge or interim relief may be available.
Speak With A Lawyer
MAX Legal Consultancy FZ LLE Office 2051, 2nd Floor, Dubai Supreme Court Complex Umm Hurair 2, Dubai, UAE
