Liquidated damages (LDs)
An agreed contractual measure of damages for a specified breach, commonly delay, subject to the relevant conditions.
by Jack Butler-Kettle · About 1 min readShare
Further detail
Read this alongside SCL Delay and Disruption Protocol.
Liquidated damages set an agreed measure for a defined breach, often delay to completion. The contractual trigger, applicable completion date and notice requirements still need to be satisfied. An agreed rate avoids quantifying actual loss in that way, but does not make every proposed deduction valid.
Check extensions of time and the period claimed before calculating the exposure. Delay damages review and response examines the basis and evidence for a disputed deduction.
Sources
- Delay and Disruption Protocol, 2nd edition, February 2017. Society of Construction Law.