The Penalty Clause on the Contractor and the Employer
Machine translationRead the Arabic original
Question:
The questioner asks: Is a penalty clause imposed on the contractor or the building owner if one of them is delayed, where a certain amount is deducted or added, permissible?
Answer:
The penalty clause is only for the contractor if he is delayed in the work without a reason, meaning out of negligence and laxity. The scholars have issued a ruling that the penalty clause is imposed on him to prevent harm to the other party. This is the penalty clause regarding the contractor. As for the employer, no, the employer has no penalty clause in his favor. Yes.
The presenter:
May Allah reward you.
The questioner asks: Is a penalty clause imposed on the contractor or the building owner if one of them is delayed, where a certain amount is deducted or added, permissible?
Answer:
The penalty clause is only for the contractor if he is delayed in the work without a reason, meaning out of negligence and laxity. The scholars have issued a ruling that the penalty clause is imposed on him to prevent harm to the other party. This is the penalty clause regarding the contractor. As for the employer, no, the employer has no penalty clause in his favor. Yes.
The presenter:
May Allah reward you.
Source
شرح كتاب التوحيد [ صالح الفوزان ]، باب من الشرك أن يستغيث بغير الله أو يدعو غيره — islamhouse.com (44:01)
The Arabic text is a machine transcription of the audio recording.