Not So Guaranteed: Can Small Losses Render a Sizable Liquidated Damages Provision Unenforceable?
A “Liquidated Damages” provision should be a key part of your playbook when entering a construction contract. These damages typically apply when a party misses a performance deadline. The value of damages is usually expressed in a certain amount of dollars per day. Liquidated Damages are intended to avoid the difficult task of figuring out the economic impact of delayed performance. In many cases, an accurate estimation is quite difficult [...]