Commentary

63 Conditions for enforcement of liquidated damages

BUILDING AND ENGINEERING vol 5
| Commentary

63 Conditions for enforcement of liquidated damages

| Commentary

63 Conditions for enforcement of liquidated damages

Contract provisions which empower the employer to recover or deduct liquidated damages are construed contra proferentem and, if ambiguous, may fail for uncertainty1. Further, it is presumed that such provisions cease to operate when the contract is determined2, although this presumption may be rebutted by clear wording3.

Compliance with any specified contractual procedures for the deduction of liquidated damages, such as the issue of a certificate of failure to complete4 or written notice from the employer of an intention to deduct5, may constitute a

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