Patrick Kelly and Kendall Hudgins | Gray Reed When project delays occur due to natural disasters, the financial implications can be severe. Construction stakeholders often focus on immediate physical damages while overlooking the potentially devastating impact of liquidated and consequential damages provisions. Understanding these crucial contract elements before disaster strikes can mean the difference between… Continue reading Weathering the Storm—Part 2: Understanding Liquidated and Consequential Damages in Construction Contracts
Tag: Liquidated Damages
Liquidated Damages v. Actual Damages – Which Is the Better Choice?
Christine Baglioni | Dowditch & Dewey Liquidated damages provisions are common to all types of agreements, from leases to construction contracts. While liquidated damages provisions may appear “boilerplate” and full of legalese, they profoundly impact how much a party may collect in the event of breach. Liquidated damages is an agreed-upon dollar amount that a… Continue reading Liquidated Damages v. Actual Damages – Which Is the Better Choice?
When Properly Drafted, Liquidated Damages Provisions Reduce Risk
William J. Tinsley, Jr. | Phelps Dunbar Utilized properly, liquidated damages provisions strengthen construction agreements because they provide a degree of certainty. Additional certainty lowers risk and allows the contractor to reduce contingency reserves which, in turn, reduce project costs while protecting the builder’s profitability. Too often, however, liquidated damages provisions are misunderstood, poorly drafted,… Continue reading When Properly Drafted, Liquidated Damages Provisions Reduce Risk
Should Commercial Owners Require Liquidated Damages?
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?
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