Board of Grievances: Signs of Sympathy for Unpaid Contractors

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A recent trend by the Board of Grievances (KSA’s administrative courts) has sparked a debate surrounding the application of Shari’ah law. The courts have granted contractors relief from penalties for delays imposed by government authorities. We have seen the contractor’s relieved if they can prove that the delays were caused by the government authority’s late payment. It has been argued that the imposition of a financial penalty on a government authority could be unlawful if the contract is for public works because there is a public interest overriding the contractor’s interest.

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