Construction Law •  Step-by-Step Guide

By Salha Al Basti Advocates  |  9 min read

To resolve a construction dispute in Dubai, you usually follow a step-by-step path set out in your contract, starting with talks and ending in arbitration or court if needed. Most construction disputes are about delays, defects, unpaid money, or changes to the work.

The first step is to check your contract, which is often a FIDIC form, and give any required written notice on time. Next, you try to settle through negotiation, which is faster and cheaper. If that fails, the dispute may go to the project engineer or a dispute board and finally to arbitration or the courts. Construction arbitration is common in Dubai because it is private and uses expert arbitrators. Keeping strong records is vital at every stage.

Salha Al Basti Advocates, a Dubai firm with over 35 years of experience, guides clients on how to resolve a construction dispute in Dubai.

What causes construction disputes, and how do you resolve them in Dubai?

Construction projects are complex, so disputes are common, but most fall into a few clear types. Delay is the biggest cause, where a project runs late and the sides argue over who is to blame and who pays. Defects are another where the work is faulty or below the agreed standard.

Payment disputes are also frequent, often over unpaid invoices or held-back money, which can link to commercial contract terms. Variations, meaning changes to the agreed work, often spark disagreement over extra time and cost. To resolve them, you follow a step-by-step path: check the contract, negotiate, use the engineer or a dispute board, and finally, arbitration or court, with a construction lawyer to guide you. For example, a delay claim often turns on whether proper notice was given on time. Construction disputes come from delays, defects, payment, or variations, and are resolved step by step from talks to arbitration or court.

Step 1: Check your contract and give proper notice

The first step in any construction dispute is to read your contract carefully. Most projects use a standard form, often a FIDIC contract, which sets out exactly how disputes must be handled. A key feature is the notice rule, which usually requires you to give written notice of a claim within a set time.

Missing this deadline, called a "time-bar," can cost you a valid claim even when you are clearly right. Just as important is keeping strong records, such as the contract, all notices, site reports, photos, and emails. These records become your evidence, which often forms the basis of a civil or contractual claim. On a large real estate project, clear records can decide the outcome. For example, a contractor who fails to give timely notice of a delay may lose the right to more time. Start by checking your contract, giving notice on time, and keeping strong records as evidence.

Step 2: Try to settle through negotiation

The best disputes are the ones solved early, without a long fight. The first real step toward resolution is usually negotiation, where the parties or their lawyers try to agree directly. This is faster, cheaper, and helps protect the working relationship for future projects.

Mediation is another option, where a neutral person helps both sides reach a fair deal. A payment dispute, for example, can often be settled at this stage or pursued as a debt claim. Settling early also avoids the stress and cost of a formal case. The key is to come prepared with clear facts and a realistic goal. For example, a well-supported demand backed by records often leads to a quick settlement. Trying to settle through negotiation or mediation first is usually the fastest and cheapest way to resolve a dispute.

Step 3: Use the engineer or a dispute board

If direct talks do not work, the contract usually sets the next step. Many construction contracts send the dispute to the project engineer, who reviews the facts and gives a formal decision. Larger projects may use a dispute adjudication board, or DAB, which is a panel that gives a quick, expert ruling.

This step is valuable because it keeps the project moving while the dispute is decided. The companies and consultants involved, often set up through corporate structures, must follow this agreed process. Skipping a required step can harm your case later. The decision at this stage may be binding for now, but can sometimes be challenged afterward. For example, a dispute board can rule on a delay claim in weeks, not months. Using the engineer or a dispute board gives a fast, expert decision while keeping the project on track.

Step 4: Resolve it through arbitration or court

If earlier steps fail, the dispute moves to its final stage. Here, the contract usually points to either arbitration or the courts. Construction arbitration is very common in Dubai because it is private and lets expert arbitrators judge complex technical issues.

If your contract has no arbitration clause, the case goes to litigation in the courts instead. At this stage, strong evidence and clear expert reports make a real difference. Where a contractor or developer cannot pay, the matter may also involve bankruptcy proceedings. Choosing the right forum and preparing well are key to a good result. For example, a technical defect claim is often better suited to arbitration with an expert arbitrator. The final step is arbitration or court, with construction arbitration favored for complex, technical disputes.

Why a construction lawyer helps you resolve it

Construction disputes mix legal rules with technical detail, so the right help matters. Salha Al Basti Advocates brings over 35 years of combined experience to construction matters across Dubai and the UAE. Our team of more than 30 legal professionals works in both English and Arabic, which suits FIDIC contracts and the onshore courts alike.

We guide you through notices, negotiation, dispute boards, and arbitration or court, and we appear before the Dubai courts and in arbitration. We respond to new enquiries within two hours during business hours, because project problems are often urgent. We cannot promise a specific outcome, but we prepare every case to give you the strongest position the facts allow.

You can learn more on our about us page, or use our contact us page to book a free consultation. Skilled, bilingual support protects your project and your money.

Frequently Asked Questions