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Liquidated Damages for Delay in the Middle East: Not Etched in Stone

By Joseph Chedrawe

Liquidated damages in construction contracts represent a fixed-rate mechanism to compensate employers for delays by contractors. Traditionally, common law courts do not interfere with the amount of liquidated damages due.

By contrast, the local courts of certain civil law jurisdictions in the Middle East are empowered to adjust those liquidated damages, which raises important questions about how and when those courts will exercise that power and whether international arbitral tribunals will do the same. Read the entire article here.

This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.