The Design and Build Contract in Dubai, Explained
Most disputes trace back to three clauses nobody read closely at signing. Here they are.
17 March 2025 · 5 min read · K4 Fit-Out Studio
A design and build contract in Dubai combines design development and construction under one agreement, which means the scope definition clause is doing more work than in a standard build contract, it has to cover a design that isn't fully drawn yet.
The clauses that matter most
Scope definition should reference a defined design stage, not a verbal brief. Variation procedure should specify how additional cost and time are agreed before work proceeds, not after. Retention, typically 5-10%, protects against defects post-handover and should have a clear release schedule tied to snagging completion.
- Scope tied to a specific design stage (concept, design development, or tender-ready)
- Variation procedure requiring written agreement before extra work starts
- Retention percentage and release schedule clearly defined
- Defects liability period, typically 12 months from handover
Payment structure
Most Dubai design and build contracts use milestone payments tied to physical progress, design sign-off, MEP first-fix, joinery installation, handover, rather than a flat monthly draw, which gives both sides a clearer link between payment and delivered work.
Getting legal review right
A construction lawyer familiar with UAE practice, not a generic commercial lawyer, should review retention and variation clauses before signing. For the broader procurement question, see our comparison of design and build vs consultant-led delivery.
Frequently asked
What retention percentage is normal in Dubai?
5-10% of contract value is typical, released in stages tied to snagging completion and the defects liability period.
Can a design and build contract be fixed-price if the design isn't finished?
Only against a defined design stage. A true fixed price needs frozen drawings; anything earlier should be a guaranteed maximum price with allowances.
What is a defects liability period?
A window, typically 12 months post-handover, during which the contractor must fix defects at no additional cost.