Section 2Liquidated damages
In this Section:
- Definition and purpose
- Partial possession
- Comparison with ‘penalties’
- Calculation of LDs
- The JCT forms
- Procedure for levying LDs
- Contractor’s delay
- Other standard forms
Definition and purpose
Liquidated damages (also known as LDs) are the compensation payable for breach of contract for which a method of calculation has been agreed in the contract. They must be a genuine pre-estimate of the loss that the employer will suffer on breach of contract by the contractor. In a construction contract they are used most often for the contractor’s failure to achieve practical completion by the completion date, and should be expressed as a daily rate for delay. That rate will apply from ...
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