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Defects & Liability Claims — ABR Advocates
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Construction Law

Defects & Liability: Protecting Against Claims & Recovering Costs

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.

Defects & Liability Claims in the UAE

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.

How We Protect Your Project

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.

Common questions

Defects & Liability Claims FAQs

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Only if it falls materially below the contract specification. If the building remains fit for purpose and the variation is imperceptible to a reasonable observer, it is likely not a defect; a visually striking shift across a facade is more arguable. Precise contract specifications reduce this category of dispute significantly.
Contractually, no — it falls outside your defects liability obligation unless the defect is ‘latent’ (hidden and not discoverable by reasonable inspection), in which case the UAE Civil Code permits claims up to 5 years after handover. Comprehensive final inspections and a signed-off defects list before the period expires are your best protection.
Engage an independent expert to determine cause and apportion responsibility, notify both the employer and design consultant of the finding, and propose that repair costs be shared proportionally. Many employers defer to the main contractor on apportionment, so confident assertion of responsibility shares often results in reasonable allocation.
Significant, and often not capped — consequential or secondary damages are frequently excluded from liability caps and treated as uncapped special damages. Protect yourself with clear contractual exclusion of consequential damages, professional indemnity insurance covering defect-related property damage, and rigorous quality assurance to prevent propagation.
Not recommended — refusing a contractual defect obligation risks counterclaims and potential termination. Instead, condition repair on release of outstanding payment as a proposed arrangement, and escalate non-payment through dispute resolution rather than refusing performance.
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This 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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