Common use of Commencement of Construction Liquidated Damages Clause in Contracts

Commencement of Construction Liquidated Damages. Owner and Contractor acknowledge and agree that any failure of Contractor to Commence Construction (as such term is defined in the US Tax Code) to occur on or before will directly cause substantial damage to Owner, which damage cannot be ascertained with reasonable certainty. Thus, if such failure occurs, Contractor shall pay to Owner, as liquidated and agreed damages and not as a penalty, the following amounts (collectively, “Commencement of Construction Liquidated Damages”). [To be discussed depending on technology and Bidder’s tax credit assumptions.]

Commencement of Construction Liquidated Damages. Owner and Contractor acknowledge and agree that any failure of Contractor to Commence Construction (as such term is defined in the US Tax Code) to occur on or before _____________will directly cause substantial damage to Owner, which damage cannot be ascertained with reasonable certainty. Thus, if such failure occurs, Contractor shall pay to Owner, as liquidated and agreed damages and not as a penalty, the following amounts (collectively, “Commencement of Construction Liquidated Damages”). [To be discussed depending on technology and Bidder’s tax credit assumptions.]