Question:
Two years ago, I signed a contract to build my own villa with one of the contractors. According to the contract, the villa will be delivered within 13 months. In the event of delay, a fine of Dh500 will be imposed on the contractor for each day of delay.
Currently, the contractor had stopped construction and completion is only 70 per cent. My question: What is the appropriate action to take against the contractor? Do I have the legal right to contract with a new contractor to complete the construction? If a lawsuit is filed against the contractor, do I have the right to claim a delay fine and also compensation, since I am currently renting a villa until I receive my villa? Please advise.
Answer:
To answer such question, I would advise the following:
Article 877 of the Civil Transaction Law states that “The contractor shall perform his work according to the conditions of the contract. If it is established that he is fulfilling his obligations in a manner that is defective or contrary to the agreement, the owner may ask the immediate cancellation of the contract, if remedying the situation is impossible, otherwise the owner may summon the contractor to abide by the terms of the contract and rectify, within a reasonable time, the manner in which he is performing the work. If, at the expiration of the fixed delay, the contractor fails to comply with this requirement, the owner may ask the judge for the cancellation of the contract or authorise him to hand over the completion of the work to another contractor at the expense of the first contractor.”
It is better to send him a legal notice before doing any action, if he abides with the legal notice and finishes the work within a reasonable time, then after he finishes, you will still have the right to file a case to claim any compensation you want including the fines for delay and compensation for renting a villa for more than the agreed time.
In case he did not abide with the notice, you have the right to file a case to cancel the contract or to ask the judge to authorise you to hand over the completion of the work to another contractor at the expense of the first contractor and, at the same time, you may request the compensation for the damages you suffered from total or partial non-performance by the first contractor taking into consideration that the burden of proof lies on you to prove these damages and it is up to the court to decide about them.
