UAE perspective on latent building defects

The rights and liabilities of contractors for latent defects depends not only on the terms of the particular construction contract but also the law of the jurisdiction in which the work is done.

This article reviews a contractor’s contractual and legal obligations and limitation of liability for latent defects after a performance (or defects liability) certificate is issued from a United Arab Emirates (UAE) perspective.

In spite of the fall in oil prices, the outlook for construction activity in the UAE remains positive, making it an attractive alternative for Chinese contractors. However, you will need to be aware of the legal nuances when tendering for or performing work in the UAE.

In this article, “defect” means “a failure of the completed project to satisfy the express or implied quality or quantity obligations of a construction contract”, as defined in Justin Sweet’s Defects. A “latent defect” means a defect that becomes visible after, but was not discoverable by reasonable inspection of the employer before, the performance certificate is issued.