Court Orders Contractor to Pay Dh4.7M to Subcontractor in Payment Dispute

The Dubai Commercial Court has ordered a contracting company to pay Dh4.7 million to a subcontractor for completed works, outstanding scaffolding rental dues and compensation for equipment, along with legal interest of 5 per cent per annum.

The dispute arose from a subcontract agreement signed in February 2024 for the supply, installation and removal of formwork, scaffolding and steel works at a project in Jumeirah Village Circle.

According to the subcontractor, the work was completed and handed over in January 2025 in accordance with the agreed specifications. However, the contractor allegedly failed to settle the outstanding payments.

An engineering expert appointed during earlier proceedings concluded that the subcontractor was entitled to Dh1.554 million for completed works, including VAT, and Dh1.146 million for scaffolding rental over specified periods. The expert further stated that the remaining scaffolding and climbing system should either be returned or compensated for at a value of Dh2.055 million.

After confirming that the contractor had been properly notified but failed to appear, the court proceeded in its absence and adopted the expert’s findings. It ordered the contractor to pay a total of Dh4.755 million, which includes compensation in place of returning the scaffolding equipment.

The court also ruled that the amount would carry legal interest of 5 per cent annually from the date the judgment becomes final until the full amount is paid.

However, the court rejected additional rental claims beyond the date of the judgment, noting that awarding compensation for the value of the scaffolding eliminated the basis for further rental charges. Costs and legal fees were apportioned accordingly.

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