Contracting firm liable for Dhs4.7m in Dubai commercial dispute

The Commercial Court in Dubai has ordered a contracting company to pay Dhs4.7 million to a subcontractor, representing the value of completed works on a project, rental dues, and compensation for scaffolding, along with 5 per cent annual legal interest, while rejecting other claims.

The case dates back to when the subcontractor filed a lawsuit demanding that the contracting company pay a total of Dhs7.6 million, in addition to Dhs89,000 per month as rent for scaffolding supplied for a project in the Jumeirah Village Circle area of Dubai, based on a subcontract signed in February 2024.

The plaintiff stated that the works were completed and delivered in January 2025 in accordance with the agreed terms and specifications, but the company failed to pay the outstanding dues. This prompted him to file a previous lawsuit requesting the appointment of an engineering expert.

The expert’s report concluded that the subcontractor was entitled to Dhs1,554,000 for the value of the completed works, including tax, and had the right to recover the remaining scaffolding and climbing system at the project site or claim their value of Dhs2,055,000. The report also confirmed his entitlement to rental payments for the scaffolding for specified periods.

Although the contracting company was legally notified, it did not attend the court sessions.

The court stated that it was satisfied with the expert’s report and ordered the contracting company to pay Dhs4,755,000. This amount includes Dhs1,554,000 for the completed works, Dhs1,146,000 for outstanding scaffolding rent, and Dhs2,055,000 as compensation for the value of the scaffolding instead of returning it.

The court also ruled that the company must pay 5 per cent annual legal interest from the date the judgment becomes final until full payment is made. However, the plaintiff’s request for scaffolding rent beyond the date of the judgment was rejected.