Challenging Enforceability of Liquidated Damages (In Federal Construction Context)

David Adelstein | Florida Construction Legal Updates A recent summary judgment opinion from the Armed Services Board of Contract Appeals (ASBCA), Appeals Of – BCI Construction USA, Inc.,ASBCA No. 6257, 2024 WL 773324 (2024), contains a worthy discussion regarding a contractor’s challenge to the government’s assessment of liquidated damages, specifically the enforceability of the liquidated damages rate.  Although… Continue reading Challenging Enforceability of Liquidated Damages (In Federal Construction Context)

CGL Coverage for Liquidated Damages and the Contractual Liability Exclusion

Stu Richeson | The Dispute Resolver Liquidated delay damages are common in construction contracts and are generally imposed when a contractor fails to achieve substantial completion within the time required by the contract. While contracts like the AIA A201-2017 have provisions for extending the time to achieve substantial completion when delays are caused by circumstances… Continue reading CGL Coverage for Liquidated Damages and the Contractual Liability Exclusion

Liquidated Damages Disproportionate to Actual Damages Deemed Unenforceable

John Mark Goodman | BuildSmart Construction contacts often include provisions that provide for pre-determined or “liquidated” damages in the event of a breach. Such provisions can provide certainty to the parties as to the consequences of a breach and can simplify the task of proving up damages at trial. However, as one contractor found out… Continue reading Liquidated Damages Disproportionate to Actual Damages Deemed Unenforceable

The Clock is Ticking: Construction Delays and Liquidated Damages

Tiffany A. Harrod | Peckar & Abramson With the on-going shortage of construction workers in the industry and other factors ranging from weather to procurement problems, the threat of project delay is real. When a contract contains a liquidated damages clause for assessing project delays, real financial consequences for contractors can result. Courts have long… Continue reading The Clock is Ticking: Construction Delays and Liquidated Damages

Can Liquidated Damages Clauses set General Cap?

Corinna Whittle | Bryan Cave Leighton Paisner SUMMARY A pair of cases in the past two years have come to opposite conclusions about whether general damages can be capped by contract provisions for liquidated damages. Liquidated damages clauses are a common feature of construction contracts, and often include a cap on the overall amount that… Continue reading Can Liquidated Damages Clauses set General Cap?

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