How are they calculated?
By the daily or weekly rate from the agreed completion date, as extended, to actual completion, subject to the cap. Errors in the start date or the extensions granted are common.
How can a contractor challenge them?
By proving entitlement to more time, employer-caused delay, or that the sum does not reflect real loss. Procedural defects in the deduction also matter.
What should an employer show?
The delay, the clause, notices given and some evidence of loss. See penalty clause principles.
Documents to have ready
- LD clause and contract data
- Programme and completion certificates
- EOT decisions
- Deduction notices
- Evidence of employer's loss
Send us the documentsA short message and the key papers are enough for a first assessment.
WhatsApp usCommon questions
Can LDs exceed the cap?
No. The cap limits recovery, subject to the contract's wording.
Are LDs the only remedy for delay?
Often they are the exclusive remedy for delay, depending on the contract.
More on construction delay & damages
This page is general information based on UAE and Dubai legislation as we understand it at the date of drafting. It is not legal advice. Laws are amended, and the right step depends on your documents and facts. Outcomes are never guaranteed.