Liquidated Damages—They Must have a Reasonable Basis
A recent case out of Pennsylvania refused to allow an owner to assess liquidated damages for project delay. This case serves as a reminder that if you are including liquidated damages in your construction contract, there must be some reasonable basis for the amount of liquidated damages. In this case, D.A. Nolt v. The Phila. Mun. Auth., the City of Philadelphia sought to enforce a $10,000 per day liquidated damages [...]