Most of construction and supply contracts contain liquidated
damages clause which enable the employer from imposing penalties
upon the contractor or the supplier in case of performance delay or
failure regardless the actual damages resulted from such failure or
delay and their value.
Although that the employers used to apply the liquidated damages
once the triggering event occurred without any consideration to the
reasons behind the triggering event or even the damages value,
however that the Court of Cassation in State of Kuwait issued
several judgements defining the nature and the limits of the
liquidated damages applicability confirming that the competent
court is entitled to reduce the deducted liquidated damages to be
equivalent to the actual value of the damages resulted from the
performance delay or failure. In other words, the
contractor is allowed to claim for the recovery of the deducted
liquidated damages if the contractor submitted solid evidence
proving
