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Q&As
Can an employer claim LADs if the contractor's entitlement to an EOT for an earlier delay period has yet to be determined?
Published on: 08 March 2017
This Q&A considers the following questions:
Can an Employer claim liquidated and ascertained damages (LADs) where there is uncertainty around whether the completion date should have been extended as a result of an earlier delay, for which the Contractor has made an extension of time (EOT) claim but it hasn't been awarded as the contractor has not yet provided sufficient substantiation? What if there is a cap on liquidated damages which is reached anyway as the contractor is still in delay even if its EOT claim is approved, and is time barred from making a further claim for this second delay?
Subject always to the terms of the specific contract, LADs for delay are normally payable by the contractor in respect of the period starting from the ‘completion date’ (or similar terminology) as defined in the contract until practical completion is achieved. The contract will invariably allow for the completion date to be varied from time to time by the
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Jurisdiction(s):
United Kingdom
Key definition:
Employer definition
What does Employer mean?
Also known as the client or developer. The person for whom the works are undertaken under the contract'>building contract by the contractor. Sometimes, but not necessarily, the employer is the owner of the site.
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