Commentary

62 Liquidated damages and penalties

BUILDING AND ENGINEERING vol 5
| Commentary

62 Liquidated damages and penalties

| Commentary

4: LIQUIDATED DAMAGES FOR DELAY IN COMPLETION

62 Liquidated damages and penalties

Construction contracts commonly make express provision as to the amount of damages which is to be paid by the contractor in the event of late completion1. The benefits of such a provision are that they avoid the difficulty, time and expense involved in proving and assessing the loss which a party will suffer in the event of a breach, and enable the parties to know in advance the potential financial consequences. In addition, a liquidated damages clause may act as a limitation of liability clause and enable the contractor

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