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Construction Payment Disputes · Dubai, UAE

Construction Bank Guarantee Disputes in Dubai

Performance, advance payment and retention guarantees are generally independent of the underlying contract and payable on demand if the wording says so. Courts intervene only in narrow circumstances, such as fraud or abuse.

Can a call be stopped?

Only in limited situations, with strong evidence, and quickly. An application is made urgently and must be well prepared. Most calls are paid. We assess realistically.

What should I check in the wording?

Expiry date, demand requirements, amount, conditions and whether it is on-demand or conditional. A demand must comply exactly with the terms. We read the instrument before any step.

What are the duties of the party calling?

To make a compliant demand and to account for the proceeds under the contract. Wrongful calls may lead to damages claims. See advance payment recovery.

Documents to have ready

  • The guarantee instrument
  • Underlying contract
  • Demand and bank correspondence
  • Evidence of default
  • Expiry and extension records

Send us the documentsA short message and the key papers are enough for a first assessment.

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Common questions

Is a guarantee call always valid?

It must comply with the guarantee terms. Compliance is checked by the bank.

Can I extend a guarantee?

Often it is requested by the beneficiary. Contract terms say who must provide extensions.

More on construction payment disputes

This page is general information based on UAE and Dubai legislation as we understand it at the date of drafting. It is not legal advice. Laws are amended, and the right step depends on your documents and facts. Outcomes are never guaranteed.

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