Penalty for withdrawal of work in public works contracts : A comparative study

  One of the key administrative sanctions available to the administration is the ability to pressure a negligent contractor in cases of serious error or default, compelling them to fulfill their contractual obligations without resorting to the judiciary. This power, often based on contractual provisions or legal authorization, allows the administration to carry out the work at the contractor’s expense to ensure the uninterrupted operation of public facilities and serve the public interest. However, this discretionary authority is not absolute and must not infringe upon the contractor’s rights. To prevent administrative arbitrariness, legal safeguards have been established, including granting the contractor the right to present a defense before penalties are imposed and subjecting the penalty decision to judicial review for legality and appropriateness.