UAE: What legal steps to take when a contractor abandons villa project

Question: Six months ago, I signed a contracting agreement with a contractor to build my villa. The contractor completed only about 30 per cent of the work, while I paid him for about 50 per cent of the work. Two months ago, the contractor left the work without any reason. What is the appropriate legal action I should take against this contractor? Should I sign a contracting agreement with a new contractor to complete the construction of the villa? Please advise.

Answer: According to Article 877 of the Civil Transactions Law, the contractor is obligated to perform the work according to the terms of the contract. If it is established that the contractor is fulfilling his obligations defectively or contrary to the agreement, the owner may request immediate cancellation of the contract if the situation cannot be remedied. Otherwise, the owner may summon the contractor to comply with the contract terms and rectify the work within a reasonable timeframe.
If the contractor fails to do so by the deadline, the owner may ask the court to cancel the contract or authorise handing over the completion of the work to another contractor at the original contractor’s expense.

The appropriate course of action is to send the contractor a legal notice demanding compliance with the contract. If he fails to respond, you may replace him with another contractor at his expense and file a lawsuit to cancel the contract, recover the amounts paid, and claim compensation for losses and delays suffered. The contractor is responsible for guaranteeing the results of his work and is liable for any damage or loss caused by his negligence or breach, except when such damage results from an accident that could not be avoided.