Rising Construction Costs in the UAE: Can the Contract Price Change?

Unexpected general exceptional circumstances affecting the financial basis of a construction contract may justify judicial intervention under the new Civil Transactions Law. A routine increase in costs or reduction in profit does not by itself establish those conditions.

Compare original pricing with dated supplier invoices and reliable price data. Identify the event, its timing, whether it was foreseeable and its actual financial effect. Review price-adjustment clauses, available stock, alternatives and notices.

The law provides judicial options according to the circumstances, including an extension, adjustment of remuneration or termination where justified. A contractor should not assume that a higher market price automatically authorises unilateral repricing.

Federal Decree-Law No. 25 of 2025 entered into force on 1 June 2026. Check the dates, applicable special legislation and temporal rules for the particular case.