Penalties in administrative contracts

Abstract

This research aims to analyze the legal and regulatory framework for the penalties stipulated in Administrative Contracts Regulation No. 600 of 2024, the latest regulatory tool for administrative contracts in Libya. Penalties represent a key tool for ensuring that contractors with the administration comply with contract terms and implement them in a manner that serves the public interest and protects public funds. The research focused on examining the types of penalties included in the regulations, such as late payment fines, contract termination, confiscation, and others, highlighting the procedural guarantees surrounding their imposition. It also discussed the limits of the administration's discretionary power in imposing these penalties and their consistency with established legal principles in the field of administrative contracts. The researcher adopted a critical analytical approach, supported by comparison with some Arab legislative experiences. The research reached several conclusions, most notably the existence of a coherent, initial legal framework, with some gaps that require addressing. It also proposed a number of legislative and administrative recommendations to improve the effectiveness of the penalties system and enhance contractual justice.