Defects are nearly inevitable on construction projects — a workmanship issue, a design misalignment, or a latent defect discovered months after handover. In the UAE, the contractor’s defects liability period typically extends 12 months after handover; after that, responsibility shifts to the employer except for latent defects discoverable within 5 years under the UAE Civil Code.
When the employer identifies a defect during the defects liability period, they typically issue a ‘Defects List’, and you are contractually obliged to repair at your cost within a specified timeframe. What constitutes a ‘defect’ — any deviation from specification that materially affects fitness for purpose — is often the crux of the dispute. We help you assess whether an identified issue is contractually a defect and, for legitimate defects, manage repair scope and negotiate cost-sharing where partly attributable to design or site conditions.
Warranty obligations sometimes extend beyond the defects liability period through extended supplier warranties (e.g. 5 years on HVAC, 10 years on structural elements). Be clear on warranty assignment: maintain records, obtain original supplier warranties, and have a mechanism to enforce them.
Liability caps are critical — many contracts limit the contractor’s total liability to a percentage of contract price, though gross negligence, willful default, and death or personal injury are usually excluded from the cap. We help you negotiate realistic liability caps at contract outset and defend against claims that exceed or fall outside the cap during disputes.
Clear definition of ‘defects’ in contracts, distinguishing design, workmanship, and latent defects
Defects liability management during the warranty period, with efficient remediation procedures and timeline control
Warranty assignment and extended warranty enforcement on major systems and equipment
Liability caps in contracts covering defect claims and protecting against unlimited exposure
Latent defect defense after the defects period, demonstrating post-handover defects are the employer’s maintenance responsibility
Who this applies to: Main contractors managing defects lists during the warranty period and planning remediation efficiently; subcontractors protecting themselves when defects result from upstream design or material supply; project owners documenting defects comprehensively and enforcing contractor remediation; specialist contractors (mechanical, electrical, plumbing) managing extended warranties and supplier enforcement.
See also: Variation & Payment Disputes · Consultant & Engineer Liability.
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Ask a questionThis page is provided for general information only and does not constitute legal advice. Figures and cost ranges are illustrative industry benchmarks, not guarantees. Law references last reviewed July 2026.
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