Michael Jefferson | Davis Wright Tremaine Learn the pros and cons of including LDs in your construction contracts to compensate for project delays Commercial owners often capitulate when contractors hesitate to agree to liquidated damages for construction project delays. More often than not, owners should demand that contractors accept liquidated damages, in lieu of an… Continue reading Should Commercial Owners Require Liquidated Damages?
Tag: Liquidated Damages
Enforceability of Contract Provisions Extending Liquidated Damages Beyond Substantial Completion
Stu Richeson | The Dispute Resolver This post takes a look at the enforceability of contract provisions providing for liquidated delay damages after substantial completion. Typically, the assessment of liquidated delay damages ends at substantial completion of a project. However, various standard form contracts, including some of the ConsensusDocs and EJCDC contracts, contain elections allowing… Continue reading Enforceability of Contract Provisions Extending Liquidated Damages Beyond Substantial Completion
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