Construction & contracting
Construction debt collection in the UAE
Retentions never released, variations never certified, certified amounts never paid, and subcontractor balances stranded in a chain. Construction produces the most structurally complicated debt in this market — and some of the most recoverable.
The four claims we see most
| Claim | What the debtor usually says | What decides it |
|---|---|---|
| Retention not released | "The defects liability period has not expired" or silence | Whether the contractual conditions for release were met and documented — practical completion, DLP expiry, snagging sign-off |
| Variations and additional works | "That was never instructed" or "it was in the original scope" | Whether the instruction was in writing, and whether the works were accepted. Verbal instructions on site are the single most common cause of these disputes |
| Certified but unpaid | "We have not been paid by the employer" | Strong position — certification is an acknowledgement of the amount. The practical question becomes timing rather than entitlement |
| Final account balance | Counterclaims for delay, defects or back-charges | Whether the counterclaims were raised contemporaneously or only once payment was demanded |
The chain problem
Construction debt is rarely a debtor refusing to pay. It is a debtor who has not been paid themselves, sitting between an employer above and subcontractors below, deciding who in that queue creates the most pressure.
That has a direct consequence for strategy. A demand for immediate payment in full from a main contractor whose own certification is stuck may be unmeetable — and an unmeetable demand produces silence rather than money. A documented settlement tied to the contractor's own receivable, with a schedule and consequences for missing it, frequently recovers considerably more.
Where the contractor has been paid and is simply holding your money to fund cash flow elsewhere, none of the above applies and a firm demand with a hard deadline is the right instrument. Distinguishing between the two is what the verification stage is for — and it is why we ask about the project, not just the invoice.
Documentation that decides construction claims
- The subcontract or LPO, including the payment and retention terms.
- Payment applications and certificates. A certified amount is close to an admission of the debt.
- Written instructions for variations. Site instructions, emails, minutes. Anything showing the additional work was directed rather than volunteered.
- Completion and handover records, and DLP expiry evidence for retention claims.
- Correspondence acknowledging the balance — often the most valuable document in the file.
Who we act for
Subcontractors and specialist trades, materials suppliers, MEP and fit-out contractors, equipment hire companies, and consultants owed fees. Also main contractors pursuing their own debtors.
Cases run through our standard five stages. Where a matter has to escalate it is referred to our associate advocates — construction disputes in the UAE frequently involve arbitration clauses, which is one of several reasons to send the contract with the claim rather than the invoices alone.
Construction FAQs
Common questions
Can a retention held for years still be recovered?
Frequently yes. Retentions are among the most recoverable construction debts because entitlement is usually clear and the contractor's objection is timing rather than principle. The contract terms and the completion records decide it.
The variation was instructed verbally on site. Are we stuck?
Harder, not hopeless. What matters is whether anything corroborates the instruction — site minutes, emails, progress reports, or the simple fact that the works were carried out and accepted without objection at the time.
Our contract has an arbitration clause. Can you still act?
Yes for amicable recovery — a demand and a negotiated settlement are unaffected by a dispute-resolution clause. It becomes relevant only if the matter escalates, at which point it is one of the first things our associate advocates would look at.
The contractor is raising back-charges we have never seen before.
Back-charges that appear for the first time in response to a payment demand are usually defensive. Contemporaneous records — did they raise the defect at the time? — normally resolve the question quickly.