Amending Law No. (12) of 2020
Concerning Contracts and Warehouse
Management in
the Government of Dubai[1]
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We,
Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (12) of 2020 Concerning
Contracts and Warehouse Management in the Government of Dubai,
Do
hereby issue this Law.
Article
(76) of the above-mentioned Law No. (12) of 2020 is hereby superseded by the
following:
a.
If a Supplier delays in supplying,
or fails to supply, all or part of the required materials beyond the deadlines
stipulated in the Contract; or if the supplied materials are rejected by the
receiving Committee, the Director General may, pursuant to a resolution he
issues in this respect, extend the deadline for an additional period of up to
thirty (30) days, without charging any delay penalty, if such extension is in
the interest of the Government Entity.
b.
Where a Supplier fails to supply the
materials by the prescribed deadlines or within the extension period granted to
him in accordance with the provisions of paragraph (a) of this Article, the
Supplier will be charged a delay penalty of zero point five per cent (0.5%) of
the value of the contracted materials for each day of delay or part thereof.
The total amount of a delay penalty may not exceed twenty per cent (20%) of the
value of the contracted materials where the delay in supply does not preclude
the use of all required materials. Where the delay in supply precludes the use
of all materials, the delay penalty will be calculated based on the total value
of the materials purchased under the Contract.
c.
Where the Supplier continues to
delay in supplying the materials until the delay penalty reaches the maximum
limit specified in paragraph (b) of this Article, the Government Entity may,
without the need for a notice or court judgment, take either of the following measures
against the Supplier:
1.
purchase the materials at the
expense of the Supplier and hold the Supplier liable for the difference in
prices, in addition to ten per cent (10%) of the value of the contracted
materials as administrative fees; or
2.
revoke the Contract, confiscate the
Performance Bond, and claim compensation for damage from the Supplier.
This
Law comes into force on the day on which it is issued, and will be published in
the Official Gazette.
Mohammed bin Rashid
Al Maktoum
Ruler of Dubai
Issued in
Dubai on 27 February 2026
Corresponding
to 10 Ramadan 1447 A.H.
©2026 The Supreme Legislation Committee in the
Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of conflict, the Arabic text will prevail.