Contractor's Escape Before Completing Construction: Steps to Finish the Villa and Recover Your Rights

01 August 2026

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Contractor's Escape Before Completing Construction: Steps to Finish the Villa and Recover Your Rights

Contractor's Escape Before Completing Construction: Steps to Finish the Villa and Recover Your Rights

If the contractor has stopped work and disappeared before completing your house, villa or project, the correct legal route does not begin with filing a claim. It begins with three ordered steps: documenting what has actually been executed on site, then serving a formal notice through the Notary Public granting the contractor a reasonable period to resume the works, and then applying to the competent court to terminate the construction contract or to authorise you to entrust another contractor with completing the works at the first contractor’s expense, together with a claim for compensation for the damage suffered.

The gravest mistake project owners make is waiting indefinitely on promises to resume, or bringing a new contractor onto the site before the percentage of completion has been documented. Doing so destroys the evidence and makes it far harder for the expert to determine later what was executed and what was not. This article explains when a contractor is considered to be in default, how to document the situation, what your options are between rectification, termination and completion at the contractor’s expense, where the financial securities stand, and when the matter may turn into a criminal complaint.

When is a contractor legally considered to have stopped or absconded?

A delay of a few days or a slow pace of work is not enough to describe a contractor as being in breach of contract. The stoppage that produces legal consequences is a refusal to carry out the works without lawful cause and for a period that departs from the agreed programme, or leaving the site and withdrawing labour and equipment, or ceasing to respond to correspondence and notices, or a clear inability to continue after receiving payments. The more precisely the contract defines the execution period and payment milestones, the easier it is to establish the breach.

Important note: the construction contract is governed by the Civil Transactions Law. A new Civil Transactions Law was issued by federal decree-law, published in the Official Gazette on 14 October 2025 and in force as of 1 June 2026. Determining the law applicable to your dispute is therefore linked to the date of the contract and the date the dispute arose, a point that must be settled with your lawyer before filing any claim.

Step one: document the situation before doing anything else

Documentation is the foundation of the entire case, because the court measures the breach by what is established, not by what is alleged. This includes photographing the whole site with a clear date, taking inventory of the works executed and comparing them against the approved drawings and the contract items, collecting payment schedules, receipts and bank transfers, and preserving correspondence, messages and meeting minutes evidencing repeated promises to resume.

Establishing the site condition through the courts
Alongside your own documentation, an application may be made for the appointment of an expert to establish the site condition, so that he inspects the site and issues an official report determining the actual percentage of completion and the state of the executed works. That report later becomes the pillar of the claim in determining what the contractor actually earned and what he received without entitlement.

Before bringing in a new contractor
Do not bring another contractor onto the site and do not carry out substantial changes before completing the documentation or obtaining authorisation from the court, because altering the site may deprive you of the ability to prove what the first contractor executed and what he left behind.

Step two: the notice through the Notary Public and the reasonable period

Before resorting to the courts, a formal notice is served on the contractor through the Notary Public setting out the breach and requiring him to resume and complete the works in accordance with the contract within a specified reasonable period. This notice serves a double function: it deprives the contractor of any argument that he was unaware, and it formally establishes that he has refused to perform after being put on notice, which is what the court relies upon when ordering termination or authorising completion at his expense.

The notice should ideally identify the contractual clauses breached, the date of the stoppage, the approximate percentage of completion, the amounts paid, and the period granted, with a warning that failure to respond will lead to legal proceedings and a claim for compensation and the agreed delay penalty.

Step three: your options before the court

The Civil Transactions Law obliges the contractor to complete the works in accordance with the terms of the contract. If it appears that he is performing the work defectively or contrary to the agreed terms, the employer may seek immediate termination where repair of the work is not possible. Where repair is possible, the employer may require the contractor to comply with the contract and correct the work within a reasonable period; if that period expires without correction, the employer may ask the judge to terminate the contract or to authorise him to entrust another contractor with completing the works at the first contractor’s expense.

Option one: termination and compensation
Ending the contractual relationship together with a claim for the amount paid in excess of the value of the works actually executed, and for compensation for the damage resulting from the stoppage, such as the cost of alternative accommodation, re-tendering expenses and increases in material prices.

Option two: authorisation to complete at the contractor’s expense
Obtaining a judgment authorising you to engage another contractor to complete the project, with the cost difference borne by the defaulting contractor and deducted from his entitlements or claimed separately. In practice this is usually the better option for a villa owner who wants his home finished rather than merely to win a case.

Financial securities: what actually protects your money

The strength of your position is determined not by the statement of claim alone but by the securities you retained. If the contract includes a performance bond or a bank guarantee, recourse may be had to it in accordance with its agreed terms. If the contract provides for a retention percentage on each payment, that is the first source from which completion cost differences are deducted. And if the contractor has fallen behind on a milestone corresponding to a due payment, the employer may withhold that payment on the basis of the defence of non-performance, provided the contractor is notified in writing.

Delay penalty
Where the contract stipulates a specific delay penalty for each day or week of delay, it is a contractual provision that may be invoked before the court, and the court retains its power to assess whether the penalty is proportionate to the actual damage.

The role of court-appointed expertise

In most cases the court appoints an engineering or accounting expert to inspect the site and determine the actual percentage of completion, to match the executed works against the drawings and specifications, to reconcile what the contractor received against what he earned, and to assess the cost of completing the remaining works. The quality of the documents you place before the expert — the contract, drawings, bills of quantities, payment receipts, correspondence and dated site photographs — is what practically shapes the outcome of the case.

When does the matter turn into a criminal complaint?

As a rule, stopping performance of a construction contract is a civil dispute resolved through termination, compensation and completion at the contractor’s expense, and it is not in itself a crime. However, the facts may be accompanied by separate acts criminalised under the Crimes and Penalties Law, such as obtaining money by fraudulent means or by assuming a false name or an untrue capacity, or disposing of sums or materials delivered to the contractor for a specific purpose in a manner contrary to that purpose.

Whether an offence is established is a matter for the Public Prosecution and the criminal courts according to the facts and evidence of each case. It is therefore unwise to file a criminal complaint on an impressionistic basis, since the shelving of the complaint may later be used against you before the civil court. The correct characterisation of the facts should first be studied with a specialised lawyer.

After the building is completed: the decennial liability

The end of the dispute with the defaulting contractor does not end your future rights. The Civil Transactions Law imposes on the engineer and the contractor a guarantee for a period of ten years covering total or partial collapse of what they have constructed or of fixed installations they have erected, and any defect appearing in them that threatens the strength and safety of the building. Documenting the date of final handover and preserving the drawings and handover reports therefore remains essential even after the project ends.

Dates and figures to keep in mind

1 June 2026The date on which the Civil Transactions Law issued by federal decree-law and published in the Official Gazette on 14 October 2025 came into force	10 yearsThe period of the engineer’s and contractor’s guarantee against total or partial collapse or any defect threatening the strength and safety of the building
Reasonable periodThe period granted to the contractor in the notice to correct or resume the works before seeking termination or authorisation to complete at his expense	ImmediatelyThe timing for applying to establish the site condition, before the site is altered or a new contractor is brought in

Practical tips

1- Do not rely on verbal promises; document every demand to resume work by a written letter or a preserved email.

2- Do not pay advances outside the payment schedule tied to completion milestones. Linking payment to progress is the strongest practical protection in this type of contract.

3- Photograph the site periodically with clear dates from the very start of the project; those photographs become decisive evidence before the expert.

4- Verify that the contractor’s licence and activity are valid with the licensing authority, and that the contract details match the licensed trade name.

5- Keep a copy of the contract, drawings, bills of quantities and all annexes and variations signed by both parties.

6- Consult a specialised lawyer before serving the notice, because the drafting and content of the notice determine the strength of your position in any subsequent claim.

Legal references

1- Federal Decree-Law No. 25 of 2025 promulgating the Civil Transactions Law.

2- Federal Decree-Law No. 42 of 2022 promulgating the Civil Procedure Law.

3- Federal Decree-Law No. 31 of 2021 promulgating the Crimes and Penalties Law and its amendments.

4- Federal Decree-Law No. 50 of 2022 promulgating the Commercial Transactions Law.

Has your contractor stopped completing your home or project?

AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS reviews the construction contract and identifies the aspects of breach, prepares the notice through the Notary Public, applies to establish the site condition and appoint an expert, files the claim for termination or for authorisation to complete at the contractor’s expense, and pursues compensation, delay penalties and recourse to the financial securities.

Contact us before bringing a new contractor onto the site: the order of the steps is what preserves the evidence

Frequently asked questions

QThe contractor has stopped work and will not answer my calls. What is the first step?

First document the site condition with photographs, take inventory of the executed works and the amounts paid, then serve a notice through the Notary Public granting him a reasonable period to resume. The notice is not a formality: it is what proves his refusal to perform after being put on notice and lays the ground for a claim for termination or completion at his expense.

QCan I engage another contractor directly without going to court?

The legally safer course is for completion at the first contractor’s expense to be authorised by the judge, because entering the site unilaterally and altering it before documentation may deprive you of proof of the percentage of completion and weaken your claim for the cost difference. The position differs where both parties agree on a documented amicable termination.

QCan I recover the payments I have made?

What you are entitled to is the difference between what you actually paid and the value of the works executed on site, plus compensation for established damage. This is why the expert report determining the percentage of completion is the reference point for settling the account between the parties.

QIs a contractor’s stoppage a criminal offence?

As a rule it is a civil dispute, not a crime. However, the facts may be accompanied by separate acts criminalised under the Crimes and Penalties Law, such as obtaining money by fraudulent means or under a false name or untrue capacity, or disposing of sums or materials delivered for a specific purpose contrary to that purpose. Assessing this is for the Public Prosecution and the criminal courts on the evidence of each case.

QMy contract contains no delay penalty. Have I lost my right?

No. The absence of a penalty clause does not prevent a claim for compensation for the established actual damage resulting from the stoppage. However, the burden of proving the damage and its amount falls on you, which is why documenting the additional costs you have borne is so important.

QThe contractor has closed or liquidated his company. What can I do?

It is necessary to verify the legal form of the establishment and its status with the licensing authority, and whether there are bank guarantees, retained amounts, or partners to whom liability may extend according to the nature of the entity. Identifying the correct defendant is fundamental, since an error here may result in the claim being dismissed on procedural grounds.

QHow long does a dispute with a contractor usually take?

The period varies according to the level of litigation and whether the claim requires the appointment of an expert, the number of expert sessions and the parties’ objections to his report. Sound documentation before filing noticeably shortens the expert stage.

QDoes the contractor’s liability end on handover of the building?

No. The Civil Transactions Law imposes on the engineer and the contractor a guarantee for ten years covering total or partial collapse of what they have constructed, and any defect appearing that threatens the strength and safety of the building, which is why the final handover date and the project documents must be preserved.

🛡Legal disclaimer

This content is published for the purpose of spreading legal culture and enhancing general community awareness of the rules governing construction contracts in the United Arab Emirates. It does not constitute formal legal advice and is no substitute for consulting a specialised lawyer to assess each case separately according to its own circumstances and the terms of its contract. In the event of any discrepancy between this text and any translation of it, the Arabic text is the authoritative and sole legal reference.

Our legal services in Dubai

AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS provides specialised legal services in construction contract disputes in the Emirate of Dubai, including cases where a contractor stops completing villas and buildings, drafting notices through the Notary Public, applications to establish the site condition and appoint experts, claims for termination of the construction contract and for authorisation to complete at the contractor’s expense, and claims for compensation and delay penalties before the courts of Dubai at their various levels.

Our services in the rest of the Emirates

The scope of these services extends to the rest of the country, including Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah, assisting villa and project owners to complete their suspended works, settle accounts with defaulting contractors, have recourse to financial securities, and protect their guarantee rights after handover.