269. Exercise of power to deduct liquidated damages.

269.     Exercise of power to deduct liquidated damages.

The terms of the contract may provide for notice of intention to deduct liquidated damages to be given by the employer to the contractor as a condition precedent to such deduction, and the issue of a certificate of failure to complete may also be such a condition precedent1. If the architect fails pursuant to any terms of the contract to give a proper extension of time, the deduction of liquidated damages may be disallowed2. Liquidated damages clauses may provide the sole remedy for delay so that unliquidated