UAE Construction Law: Decennial Liability and the New Civil Code in 2026

A contractor and a supervising engineer who build a project in the UAE are jointly liable to the employer for 10 years after handover if the building collapses or develops a defect that threatens its structural stability or safety. That liability exists regardless of fault, cannot be excluded by contract, and runs from the date stated in the Taking Over Certificate. Federal Decree-Law No. 25 of 2025, the new Civil Code, comes into force on 1 June 2026 and preserves the core regime while adding new rules on recovery against subcontractors. Contractors and engineers signing projects in 2026 are signing into a 10-year strict liability framework that ends in 2036.

• Decennial liability is strict. Proof of fault is not required. The contractor and supervising engineer are jointly and severally liable for collapse or defects threatening structural stability.
• The liability period is 10 years from the date of handover, with a further 3-year window after the collapse or defect appears within which a claim must be filed.
• Any contractual provision purporting to exclude or limit decennial liability is void under Article 882 of the current Civil Code (Article 823 under the new Civil Code from June 2026).
• The new Civil Code expressly preserves the contractor's right of recourse against subcontractors, but that recovery claim runs on the ordinary 5-year commercial limitation period, not the 10-year decennial clock.

Who this applies to

The decennial regime applies across the UAE and covers:

• Main contractors responsible for building and other fixed installations, including civil works such as bridges, roads, sewage systems, and dams
• Supervising engineers and architects responsible for both design and construction supervision
• Design-only engineers, whose liability is narrower and limited to design defects under Article 881 (Article 822 under the new Civil Code)
• Developers who act as contractor or who build through wholly-owned construction vehicles
• Consortium members on joint venture projects, where liability typically attaches jointly across the JV

It does not apply to:

• Subcontractors in their direct relationship with the employer (though main contractors can and should structure back-to-back indemnities with subcontractors)
• Temporary structures such as scaffolding, site offices, or short-term installations
• Minor defects, aesthetic issues, or mechanical and electrical system failures that do not affect structural integrity
• Deterioration through normal wear, lack of maintenance, or misuse by the building owner

For the broader framework governing construction contracts across the UAE, including Dubai Law No. 7 of 2025 contractor registration rules and the new Civil Code reforms, see our construction lawyers in the UAE guide.

The legal foundation: Articles 880 to 883 (current) and Articles 821 to 824 (from 1 June 2026)

The UAE Civil Code currently deals with decennial liability in four articles at the end of the Muqawala chapter of Federal Law No. 5 of 1985. Those articles will be renumbered and modestly amended under Federal Decree-Law No. 25 of 2025.

Article 880 (current): the strict liability rule

Article 880(1) provides that where the subject of a contract is the construction of buildings or other fixed installations designed by an engineer and built by a contractor under the engineer's supervision, the contractor and engineer are jointly liable for 10 years from delivery for any total or partial collapse of the building, and for any defect threatening its stability or safety.

Article 880(2) makes clear that liability arises even if the defect results from a problem in the ground itself, and even if the employer consented to the building in its form. This is a "no fault" rule: the contractor cannot defend a claim by showing the employer accepted the faulty installation.

Article 880(3) fixes the start date of the 10-year clock at the date of delivery of the works. In practice, this is the date stated in the Taking Over Certificate under FIDIC and most bespoke contracts.

Article 881 (current): the design-only engineer

If the engineer's role is limited to design without construction supervision, Article 881 confines the engineer's liability to defects arising from the design itself. Pure design engineers carry a narrower exposure than design-and-supervise engineers.

Article 882 (current): exclusion clauses are void

Article 882 voids any contractual term purporting to exclude or limit decennial liability. Parties cannot contract out of the regime. They can, however, agree a longer liability period if they choose. This is the single most misunderstood point in UAE construction contracting: a clause limiting the contractor's liability to the value of the contract, or to specific defect categories, has no legal effect against a decennial claim.

Article 883 (current): the 3-year claim window

Article 883 provides that a claim for decennial liability must be filed within 3 years of the collapse occurring or the defect being discovered. This is a strict limitation period specific to decennial claims, shorter than the general 15-year UAE limitation, and is measured from discovery rather than handover. In practice, this creates a two-layer time structure: the defect must appear within 10 years of handover, and the claim must be filed within 3 years of that appearance. A defect discovered in year 9 of the warranty gives the employer until year 12 to sue.

The new Civil Code: Articles 821 to 824 from 1 June 2026

Federal Decree-Law No. 25 of 2025 comes into force on 1 June 2026 and largely preserves the existing regime under new article numbers. The 10-year liability remains strict. The 3-year claim window remains. The anti-exclusion rule remains. Three substantive changes matter for contractors and engineers.

First, the new Civil Code refers to the "engineer" rather than the "architect," reflecting market usage. Second, the joint and several nature of contractor-engineer liability is clarified more explicitly in the statutory text. Third, and most significantly, the new Civil Code introduces an express provision preserving the contractor's right of recourse against subcontractors and suppliers, while clarifying that the strict decennial standard does not apply to that recovery claim. A contractor seeking to recover from a subcontractor must establish fault or breach of contract, not simply point to the decennial finding.

What triggers decennial liability and what does not

The regime covers two categories of failure: total or partial collapse, and defects threatening structural stability or safety. UAE courts have repeatedly confirmed that decennial liability does not extend to every defect.

The Dubai Court of Cassation has confirmed (Case 150/2007) that liability survives even where the defect arises from a fault in the ground itself, and that only parties with a contractual relationship to the contractor or engineer can rely on the decennial provisions. Neighbouring property owners who suffer loss from a decennial event must bring a tort claim, not a decennial claim.

The four defences available to a contractor or engineer

A decennial claim is difficult to defeat because fault is not an element. The four defences available are narrow.

Force majeure

The contractor or engineer can argue that an unforeseeable event beyond their control, as defined in Article 273 of the current Civil Code, caused the collapse. Force majeure in the decennial context is hard to establish. Courts have held that it generally requires an event causing complete destruction of the building, not merely contributing to a defect.

External cause after handover

If the building failure was caused by acts of the employer or a third party after handover, such as unauthorised structural modifications by the owner or damage by a tenant, the contractor and engineer can argue that the decennial presumption is broken. This is the defence most often raised in practice and requires precise documentation of the post-handover chain of events.

Defect falls outside structural scope

The contractor can argue that the alleged defect does not affect structural stability or safety and is therefore outside Article 880. Courts will usually appoint a technical expert to determine whether the defect falls within the regime.

Claim filed out of time

Under Article 883, a claim must be filed within 3 years of the defect's discovery. A contractor can raise limitation as a complete defence if the employer sat on the defect before suing. Documenting the date of discovery (and therefore the trigger of the 3-year clock) is often the key evidential battle.

Decennial liability insurance: mandatory under Article 880 and standard on projects above AED threshold

Decennial liability insurance is a statutory requirement under Article 880 of the Civil Code and a standard condition on major UAE projects. Most FIDIC and bespoke contracts require the contractor to procure:

• Contractors' all-risk insurance during construction
• Professional indemnity insurance for design work
• Public liability insurance
• Workers' compensation insurance
• Decennial liability insurance covering the 10-year post-handover period

Cover must remain in place for 10 years after completion and premiums are typically paid upfront at project start rather than annually. A policy lapsing in year 4 or 5 because of a missed renewal leaves the contractor facing decennial exposure without cover, which is a common and expensive oversight in long-tail projects. For the full construction insurance framework and the typical policy structure on UAE projects, see our insurance in construction contracts guide.

Subcontractor recovery and the back-to-back gap

Decennial liability does not apply to subcontractors in their direct relationship with the employer. The main contractor carries the full exposure and must try to recover against the subcontractor responsible for the defect. Under the current regime, the recovery mechanism is unclear and has produced inconsistent case law.

The new Civil Code closes this gap from 1 June 2026. Article 823 (or its equivalent provision) expressly preserves the contractor's right of recourse against subcontractors and suppliers. The recovery action is a contractual claim based on fault or breach, subject to the ordinary 5-year commercial limitation period.

This creates a timing problem. A decennial claim against the main contractor can arise in year 8 or 9 after handover. The main contractor's recovery claim against the subcontractor is subject to a 5-year limitation period that typically runs from the subcontract completion date. By the time the main contractor knows it faces a decennial claim, the recovery window against the subcontractor may already be closed.

Two practical responses address this gap:

1. Back-to-back indemnities: subcontracts should include broad indemnity clauses obliging the subcontractor to indemnify the main contractor for any decennial claim arising from the subcontracted work, with limitation provisions that toll or extend until a claim is finally determined.
2. Extended warranty periods: subcontractors should be required to maintain warranties and insurance cover matching the main contractor's decennial exposure, not simply the project defects liability period.

The FIDIC 1999 form (Sub-Clause 5.2) allows the contractor to refuse a nominated subcontractor who will not agree to indemnify the contractor for obligations arising out of the contract. This provision should be used more actively than it typically is.

Practical risk-management sequence for contractors and engineers

Decennial exposure is managed through contract drafting, insurance procurement, and documentation, not through dispute. By the time a claim lands, the risk position is largely fixed.

1. Check the contract clauses on limitation of liability. Any clause purporting to cap or exclude decennial liability is void. Remove or amend any clause that gives a false sense of protection to your risk committee.
2. Confirm decennial insurance is procured and will remain in place. Confirm the policy term, the premium payment schedule, and the named insureds.
3. Document the Taking Over Certificate and the handover date rigorously. The 10-year clock starts here, and precise documentation is the foundation of any future defence.
4. Structure subcontracts back-to-back. Indemnities, insurance obligations, and warranty periods should match the main contract's decennial exposure, not the project defects liability period.
5. Retain project documentation for 10 years minimum. Dubai Law No. 7 of 2025 makes this explicit for Dubai contractors from 8 January 2027. Elsewhere it remains best practice. Without drawings, method statements, quality records, and materials certificates, a defence to a decennial claim 8 years later is close to impossible.
6. Run a post-handover monitoring protocol. Document the state of the works at handover and keep track of owner modifications. External cause defences turn on this evidence.
7. Flag decennial matters to the insurer early. Most decennial policies require prompt notification of a potential claim, and late notification can void cover.

For the full framework governing taking over and the legal consequences that crystallise at handover, see our taking over certificate guide.

How should UAE contractors and engineers approach decennial liability in 2026?

A contractor or engineer working on a UAE project in 2026 is accepting a 10-year strict liability exposure that extends to 2036. That exposure cannot be contracted away. It survives force majeure unless the building is completely destroyed. It attaches even where the ground itself was defective and the employer accepted the works. Insurance mitigates the financial impact but does not remove the exposure.

The firms that treat decennial liability as a live commercial risk in contract negotiation, insurance procurement, and subcontract structuring are the ones that reach year 10 without material loss. The firms that rely on contractual exclusion clauses, carry lapsed decennial cover, or chase subcontractor recovery after the 5-year commercial limitation has expired are the ones that carry the claim uninsured and unrecovered.

For contractors, engineers, and developers navigating the transition to the new Civil Code on 1 June 2026, reviewing existing insurance arrangements ahead of Dubai's new contractor registration deadlines, or defending a live decennial claim, our construction law team advises across contract drafting, risk allocation, and dispute strategy.

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