Introduction

Decennial liability remains one of the most consequential legal doctrines shaping construction and consultancy sectors in the United Arab Emirates. Rooted in the UAE Civil Transactions Law (Federal Law No. 5 of 1985) and reflected in continually updated regulations, this regime imposes strict, non-delegable obligations on architects, engineers, and contractors for a full ten years following project completion. Recent legal updates — including Cabinet Decision No. 31 of 2023 and clarifications issued by the UAE Ministry of Justice — have reinforced the importance of understanding, anticipating, and proactively managing this liability. For UAE businesses, executives, HR managers, and legal practitioners, robust comprehension and compliance strategies are not just necessary for regulatory adherence but vital for commercial resilience and reputational protection. This article provides a comprehensive analysis of decennial liability, delivering actionable legal insights, strategic recommendations, and real-world case examples tailored to the UAE context. Our guidance is drawn directly from federal legislation, government portals, and official ministerial commentaries, ensuring accuracy, authority, and relevance for 2025 and beyond.

Table of Contents

Civil Transactions Law: Federal Law No. 5 of 1985

The legal foundation for decennial liability in the UAE is set out under Articles 880 to 883 of the UAE Civil Transactions Law (Federal Law No. 5 of 1985). This regime imposes joint and several liability on consultants (engineers and architects) and contractors for ten years after handover of a building or fixed installation, provided collapse or defect is due to design or construction flaws, regardless of underlying contract terms. Notably, the proponents of such work cannot waive decennial liability contractually, reflecting the imperative of public safety and confidence in the nation’s built environment.

Legal Objectives and Rationale

The decennial liability regime aims to safeguard third parties and end-users from latent design and construction defects that may manifest years after project completion — a crucial consideration given the UAE’s rapid urban expansion and diversified real estate development. By embedding non-waivable, strict liability, the legislator ensures that negligence or non-compliance does not go unchecked, incentivizing world-class standards at every stage of project delivery.

Scope and Application of the UAE Decennial Liability

What Projects Does Decennial Liability Apply To?

Applies To Exempt
Buildings Movable structures
Fixed installations (civil works, bridges, etc.) Minor / temporary works
Structural elements of construction Equipment, fixtures or fit-out works not integral to structure

For a project to fall within decennial liability, the work must be of a permanent, fixed character — buildings, bridges, dams, tunnels, and similar undertakings. The law distinguishes between deficiencies affecting the solidity, stability, or safety of the structure (which attract strict liability) and superficial, non-structural flaws (which may be addressed under other warranty provisions or defect liability periods stipulated by contract).

Who Bears the Liability?

Decennial liability under UAE law attaches jointly and severally to both the consultant responsible for design and supervision, and the contractor who executes the works. Subcontractors are not directly liable under Article 880 unless specifically named, but main contractors are responsible for the actions of their subcontracted parties.

Key Obligations for Consultants and Contractors

Designers and Consultants

  • Develop accurate, complete, and code-compliant designs
  • Supervise works, ensuring adherence to drawings and specifications
  • Utilise qualified personnel and maintain rigorous recordkeeping

Contractors

  • Construct in accordance with approved technical plans
  • Comply with local, federal, and international standards (where applicable)
  • Employ approved materials and skilled labor

Important: Even if the defect’s root cause lies in the design, the contractor will share liability unless it can be proven that the issue was apparent and unrectifiable without the designer’s intervention — and that written notification was provided in due time.

Amendments Impacting Decennial Liability in Recent Legislation

The UAE regulatory landscape has evolved, with recent measures clarifying and, in some cases, expanding the effect of decennial liability:

  • Cabinet Decision No. 31 of 2023: Reinforces the mandatory nature of decennial liability and reiterates that any contractual clause seeking to lessen or exclude this liability is void. It also extends reporting requirements and documentation obligations for both consultants and contractors upon project handover.
  • Ministerial Circulars and Guidelines (2024–2025): The Ministry of Justice and the Ministry of Energy and Infrastructure have issued supplementary guidance on insurance requirements, best-practices in project supervision, and recommended dispute resolution pathways in cases of latent defects.

Practical Consultancy Insights on the New Norms

  • Contracts executed from 2025 onwards will be subject to stricter record retention mandates including design deliverables, permits, and site supervision logs — enhancing traceability and accountability.
  • Design and build contracts require a careful allocation of risk backed by robust professional indemnity (PI) policies explicitly tailored to decennial liability exposures.

Old vs. New: Comparing UAE Decennial Liability Frameworks

Aspect Before Recent Amendments Post-2023/2025 Amendments
Standard of Proof Strict liability but some courts required evidence of gross negligence Affirmed strict liability; liability applies automatically to qualifying defects/collapse
Waiver/Limit in Contract Certain drafting ambiguities; rare enforcement attempts Explicitly void by law; attempts to limit set aside
Insurance Mandates Not always contractually required Greater emphasis on PI and decennial liability coverage by insurers
Reporting & Documentation General duty to document Specific handover protocol and retention specified by regulations
Government Oversight Limited central monitoring Enhanced Ministry scrutiny, project registrations and compliance checks

Visual Suggestion

Insert a process flow diagram showing how a project moves from design through completion, handover, and the ten-year liability period — flagging key compliance checkpoints.

Practical Implications and Risk Scenarios

What Triggers Decennial Liability?

Under UAE law, decennial liability is triggered in two main scenarios:

  1. Total/Partial Collapse: If the building or fixed installation collapses, the client may seek damages from both the consultant and contractor, even if the flaw emerged years after completion.
  2. Latent Defects Affecting Stability or Safety: Discovery of hidden faults (e.g., substandard foundations, poor waterproofing leading to structural deterioration) that compromise the usability or safety of the building.

Risk Scenario Example

A developer in Dubai completes a luxury residential tower in 2026. In 2029, major water leakage causes foundation settling and threatens structural safety. Investigations reveal that the design was incomplete and that the contractor used insufficiently treated materials, despite site supervision. Here:

  • Both consultant and contractor are held liable under Article 880, regardless of contract clauses, and face claims for remediation costs and consequential damages.

Compliance Strategies and Mitigation Approaches

What Must Consultants and Contractors Do?

Step Action
1 Maintain comprehensive records of all design, site supervision, materials, and approvals
2 Secure tailored professional indemnity and decennial liability insurance
3 Undertake frequent project audits and inspections
4 Implement robust quality management systems aligned with UAE and international standards
5 Design clear reporting/notification procedures if design or execution flaws are identified

Compliance Checklist Visual Suggestion

Insert a compliance checklist table summarizing steps to ensure decennial liability management — from contract drafting to handover and post-completion monitoring.

Professional Recommendations

  • Consult with qualified legal advisors during contract negotiation to identify and apportion risks appropriately.
  • Work closely with specialist insurance brokers to obtain decennial liability insurance fully aligned to UAE legal requirements.
  • Ensure internal HR and technical teams are trained on new reporting standards and documentation protocols.

Notable UAE Case Studies and Hypothetical Examples

Case Study 1: Real Estate Developer in Abu Dhabi

A mid-rise office project sees facade detachment three years post-handover. The owner files a claim, court-appointed experts find original design calculations insufficient for wind load prevalent in the Emirate. The consultant and contractor are held jointly liable, regardless of their individual contractual risk allocations, under Civil Transactions Law Article 880 — with insurance covering only part of the total remediation and business interruption losses.

Case Study 2: Hypothetical Scenario

A hotel developer selects a contractor who subcontracts MEP works. After four years, a significant fire occurs due to electrical failure traced to improper installation, not specified in the approved design. The main contractor bears liability, and shares recourse only if explicit evidence is shown that the MEP subcontractor deviated from the instructions and received written warnings.

Lessons Learned

  • Documentation and site supervision must be rigorous — courts will expect clear evidence showing compliance with codes and contract documents.
  • Delegation to specialist subcontractors does not dilute main parties’ obligations.

Penalties and Liabilities for Non-Compliance

Consequences of Breach

  • Financial liability for rectification costs, consequential and indirect damages
  • Professional disciplinary actions, including suspension or revocation of trade licenses
  • Potential criminal consequences if gross negligence results in injuries or fatalities
Penalty Type Scope Examples
Civil Damages Remedial works, loss of use, indirect damages Reconstruction, compensation for business losses
Professional Sanctions Disciplinary or regulatory measures License suspension, blacklisting
Criminal Liability In cases of gross negligence with harm Fines, imprisonment

Visual Suggestion

Insert a penalties comparison chart summarizing civil, administrative, and criminal exposures under UAE law, drawing on recent Ministry enforcement data.

Conclusion and Forward Guidance

Decennial liability is a defining feature of the UAE construction and consultancy regulatory landscape. Its strict, non-excludable nature and recent regulatory clarifications demand that consultants, contractors, developers, and their legal advisors embed best-in-class governance, documentation, and insurance strategies into every project. As the Ministry of Justice and other regulators intensify their oversight, businesses that treat decennial liability not as a technicality but as a core compliance and risk management issue will enjoy commercial longevity, reduced dispute risk, and enduring reputational strength. Looking ahead, we recommend that clients:

  • Stay informed of Cabinet Decisions and Ministry Circulars impacting project governance and liability exposures
  • Engage with legal counsel at every stage from procurement through project lifecycle and post-handover monitoring
  • Adopt holistic compliance programs and maintain continuous engagement with insurers and technical consultants

With regulatory expectations rising and landmark construction projects reshaping the UAE, proactivity around decennial liability is no longer optional — it is essential.