Establishment of Shariah principles on interest for late interim payment for construction works

Mohamad Hamdan, Noor Aishah and Ahmad Sarkawi, Azila and Abdullah Habib, Siti Nora Haryati (2019) Establishment of Shariah principles on interest for late interim payment for construction works. In: International Conference on Islamic Law, Economy & Finance (SPEKI 2019), 11th - 12th November 2019, Lotus Desaru Beach Resort & Spa, Johor, Malaysia.

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Abstract

Under the Malaysian law, the failure of an employer on making timely interim payments towards its contractor as agreed in the construction works contracts give rise to the rights of the contractor to claim for interest. The aim of this study is to establish Shariah principles based on the current practise of awarding interest to the contractors due to the said default. To achieve this, a qualitative study was conducted through thematic analysis of selected construction cases awarded in the Malaysian courts. From the analysis, Shariah principles are established by referring to the Al-Quran and As-Sunnah as well as Islamic legal maxims. It is recommended that the Shariah principles established from this study to be integrated in the provision of late interim payment charges during the formation of construction works contract to be in harmony with the Islamic teachings.

Item Type:	Proceeding Paper (Other)
Uncontrolled Keywords:	Shariah Principles, Interest, Payment, Construction
Subjects:	K Law > KBP Islamic Law T Technology > T Technology (General) T Technology > T Technology (General) > T173.5 Technology and Islam
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Architecture and Environmental Design Kulliyyah of Architecture and Environmental Design > Department of Quantity Surveying Kulliyyah of Architecture and Environmental Design > Department of Urban & Regional Planning
Depositing User:	dr azila ahmad sarkawi
Date Deposited:	10 Nov 2023 10:01
Last Modified:	10 Nov 2023 10:01
URI:	http://irep.iium.edu.my/id/eprint/108027

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