Construction dubai, pay-when paid clause

Testing the legal basis of the lack-of-purpose argument

One of the most daunting prospects for an MEP sub-contractor – or, indeed, any sub-contractor – is the possibility of being held ransom to a pay-when-paid clause. Quite commonly included in MEP sub-contracts, this clause effectively dictates that the MEP sub-contractor will receive payment only within a given period of time, usually around 14 days,…

Dubai International Arbitration Centre

Emirates Maritime Arbitration Centre and DIFC Arbitration Institute merge into Dubai International Arbitration Centre

In an announcement made on Saturday 18 September 2021 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Emirates Maritime Arbitration Centre and the Dubai International Financial Centre Arbitration Institute are to be dissolved and their operations and assets merged into the Dubai International Arbitration Centre (‘DIAC’). Decree No. (34) of 2021 replaces Decree…

What FIDIC’s New Green Book Holds

The following article was originally published in Climate Control Middle East.    The FIDIC suite of construction contracts is written and published by the International Federation of Consulting Engineers. The FIDIC acronym stands for the French version of the Federation’s name (Federation Internationale des Ingenieurs-Conseil). FIDIC’s Contracts Committee produces standard forms of contract for civil…

Legal 500: UAE Litigation Chapter 2021

Originally published as a Country Specific Q&A on Legal 500, Partner, Abdullah Ishnaneh provides an overview of litigation laws and regulations applicable in UAE, answering such questions as: What are the main methods of resolving commercial disputes?     The main method of resolving commercial disputes is litigation before the local courts. However, there are other means…

Revised Central Bank Guidance regarding Saving and Investment Insurance

Pay-when-paid clause can be defeated

Written by Antonios Dimitracopoulos for MEP Middle East    The often-dreaded pay-when-paid clause in subcontracts has deterred many from pursuing what is an otherwise legitimate claim. The common concern has always been that a defence would almost certainly be raised by the main contractor that no corresponding payment has been made by the employer and, as such,…

The Dangers of Failing to Accurately Define the Terms Under which Contractual Payments are to be made

In contracts where payment is intended to be made upon the occurrence of specific events or the satisfaction of certain conditions it is paramount, for any payment claim to be successful, that such events and conditions be clearly defined, as well as convincingly proven to have occurred. In a recent arbitration concerning a claim by…

Arsalan Tariq has been named Partner at BSA Al Rashdi & Al Barwani Advocates and Legal Consultants

Arsalan Tariq has been named Partner at BSA Al Rashdi & Al Barwani Advocates and Legal Consultants in Oman. Practicing since 2009, Arsalan specializes in Islamic and conventional finance, bilateral and syndicated project finance, acquisition finance, Islamic product development, cross-border financing and financial restructuring. Arsalan will continue working from BSA’s DIFC office in Dubai, attending…