The Builder Demand Letter is a critical document in the UAE construction industry used when payment issues arise between contractors, developers, or other construction project stakeholders. This document serves as a formal notice under UAE Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993), typically issued when payment for completed construction work is overdue. The Builder Demand Letter represents a crucial step before initiating legal proceedings, demonstrating the sender's attempt to resolve the payment dispute amicably while preserving legal rights. It must include specific details about the project, outstanding amounts, completion status, and payment terms, all while adhering to UAE legal requirements for formal notices. This document is particularly important in the UAE construction sector, where formal documentation of payment demands is essential for potential future legal proceedings.
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1. Sender's Details: Full legal name, address, and contact information of the construction company/builder
2. Date: Current date of the demand letter
3. Recipient's Details: Full legal name and address of the party owing payment
4. Project Reference: Clear identification of the construction project, including project name, location, and contract reference numbers
5. Payment Claim Details: Specific amount owed, including breakdown of principal sum and any applicable interest
6. Background of Work Completed: Brief description of the work performed and completion status
7. Payment History: Summary of previous payments received and outstanding balance
8. Legal Basis: Reference to relevant contract terms and UAE laws supporting the payment claim
9. Demand Statement: Clear statement of demand for payment, including payment deadline
10. Consequences of Non-Payment: Statement of legal actions that will be taken if payment is not received
11. Closing: Professional closing statement, signature block, and company details
1. Previous Correspondence: Reference to prior payment requests and communications - include when there has been significant previous correspondence
2. Dispute History: Summary of any relevant disputes or disagreements - include when there are contested items
3. Site Access Details: Information about site access for verification - include when relevant to the payment dispute
4. Third Party Certifications: Reference to engineer/consultant certifications - include when work completion has been certified
5. Settlement Proposal: Proposed payment plan or settlement terms - include when willing to negotiate payment terms
1. Schedule A - Payment Breakdown: Detailed breakdown of all amounts claimed, including original contract sum, variations, and current claim
2. Schedule B - Work Completion Evidence: Photos, completion certificates, or other evidence of work completed
3. Schedule C - Contract Excerpts: Relevant excerpts from the construction contract supporting the claim
4. Schedule D - Previous Invoices: Copies of relevant invoices and payment certificates
5. Schedule E - Correspondence History: Copies of relevant previous payment requests and communications
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