2020 · ENVIRONMENT-BEHAVIOUR PROCEEDINGS JOURNAL

Assessment of Ta'widh and Gharamah in Islamic Financing Contract and Its' Applicability Potential for Construction Works Contracts

Hamdan, Noor Aishah Mohamad, Sarkawi, Azila Ahmad, Habib, Siti Nora Haryati Abdullah, Othman, Ahmad Azam

Journal: ENVIRONMENT-BEHAVIOUR PROCEEDINGS JOURNAL
Année: 2020
Volume: 5
Numéro: 15
Mois: DEC

Abstract

Ta'widh and gharamah are the Shariah compliant late payment charges for Islamic financial contracts. Seven identified themes were used to qualitatively compare and contrast between the Guidelines on Late Payment Charges for Islamic Banking Institutions (2012) against the provisions of interest for late interim payment from four Malaysian construction works contracts. The findings revealed similarities and differences for identification of Shariah compliance. Recommendations were made for the harmonisation of ta'widh and gharamah in the construction works contracts while ensuring its practical and legal applicability. The outcome is beneficial for Islamic organisations and Muslims involved with the construction works.