Liquidated Damages versus Delay Penalties and Limitation of Liability: A Comparison between the English and United Arab Emirates Law

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The British University in Dubai (BUiD)
The liquidated damages and delay penalties and their limitation pursuant to the contract versus the applicable law are a subject that is frequently triggered during construction disputes all over the world. There are some differences between common and civil law countries when it comes to related cases. Since United Arab Emirates/ Dubai is a metropolitan country/ City that has attracted different professionals from around the globe with their different law backgrounds and interpretation of the Liquidated Damages and Delay Penalties; this subject has become a hot point of contention between the construction industry professionals. In this dissertation I will be discussing the concept of the Liquidated Damages and Delay Penalties, why they are required in the contract; what their benefits are; how they are commonly used by the employer; what the difference is between them according to common and civil laws; and, the applicability of limiting them according to contract and applicable law. I will also be discussing the limitation of liability in general as a comparison between English and United Arab Emirates laws. To conclude I will submit recommendations on which one to use and under what circumstances.
liquidated damages, United Arab Emirates Law, delay penalties, construction industry, law