Common use of Liquidated Damages for Delay Clause in Contracts

Liquidated Damages for Delay. If the Contractor shall fail to complete the Works within the time for completion prescribed in the Contract, or any extended time for completion in accordance with the Contract, then the Contractor shall pay to the Employer the sum specified in the Contract as liquidated damages, for the delay between the time prescribed in the Contract or the extended time for completion, as the case may be, and the date of substantial completion of the Works as stated in the Certificate of Substantial Completion, subject to the applicable limit stated in the Contract. The said sum shall be payable by the sole fact of the delay without the need for any previous notice or any legal proceedings, or proof of damage, which shall in all cases be considered as ascertained. The Employer may, without prejudice to any other method of recovery, deduct the amount of such liquidated damages from any monies in its hands due or which may become due to the Contractor. The payment or deduction of such damages shall not relieve the Contractor from his obligation to complete the Works or from any other of his obligations and liabilities under the Contract. If, before the time for completion of the whole of the Works or of a Section of the Works, a Certificate of Substantial Completion has been issued for any part or Section of the Works, the liquidated damages for delay in completion of the remainder of the Works or of that Section may, for any period of delay after the date stated in such Certificate of Substantial Completion, and in the absence of alternative provisions in the Contract, be reduced in the proportion which the value of the part or Section so certified bears to the total value of the whole of the Works or Section, as applicable. The provisions of this Sub-Clause shall only apply to the rate of liquidated damages and shall not affect the limit thereof. CERTIFICATE OF SUBSTANTIAL COMPLETION Substantial Completion of the Works When the whole of the Works have been substantially completed and have satisfactorily passed any test on completion prescribed by the Contract, the Contractor may give a notice to that effect to the Engineer accompanied by an undertaking to finish any outstanding work during the Defects Liability Period. Such notice and undertaking shall be in writing and shall be deemed to be a request by the Contractor, for the Engineer to issue a Certificate of Substantial Completion in respect of the Works. The Engineer shall, within twenty-one (21) days of the date of delivery of such notice either issue to the Contractor, with a copy to the Employer, a Certificate of Substantial Completion stating the date on which, in his opinion, the Works were substantially completed in accordance with the Contract or give instructions in writing to the Contractor specifying all the work which, in the Engineer's opinion, requires to be done by the Contractor before the issuance of such Certificate. The Engineer shall also notify the Contractor of any defects in the Works affecting substantial completion that may appear after such instructions and before completion of the work specified therein. The Contractor shall be entitled to receive such Certificate of Substantial Completion within twenty-one (21) days of completion, to the satisfaction of the Engineer, of the work so specified and making good any defect so notified. Upon issuance of the Certificate of Substantial Completion of the Works, the Contractor shall be deemed to have undertaken to complete with due expedition any outstanding work during the Defects Liability Period.

Liquidated Damages for Delay. If the 7.1 Contractor shall fail to complete achieve Substantial Completion and Final Completion of the Works Work within the time for completion prescribed in the Contract, or any extended time for completion in accordance with the Contract, then the Contractor shall pay to the Employer the sum specified in the Contract as liquidated damages, for the delay between the time prescribed in the Contract or the extended time for completion, SOW (as the case may be, and the date of substantial completion of the Works as stated in the Certificate of Substantial Completion, subject to the applicable limit stated in the Contract. The said sum shall be payable by the sole fact of the delay without the need for any previous notice or any legal proceedings, or proof of damage, which shall in all cases be considered as ascertained. The Employer may, without prejudice to any other method of recovery, deduct the amount of such liquidated damages from any monies in its hands due or which may become due to the Contractor. The payment or deduction of such damages shall not relieve the Contractor from his obligation to complete the Works or from any other of his obligations and liabilities under the Contract. If, before the time for completion of the whole of the Works or of a Section of the Works, a Certificate of Substantial Completion has been issued for any part or Section of the Works, the liquidated damages for delay in completion of the remainder of the Works or of that Section may, for any period of delay after the date stated in such Certificate of Substantial Completion, and in the absence of alternative provisions in the Contract, be reduced in the proportion which the value of the part or Section so certified bears to the total value of the whole of the Works or Section, as applicable. The provisions of this Sub-Clause shall only apply to the rate of liquidated damages and shall not affect the limit thereof. CERTIFICATE OF SUBSTANTIAL COMPLETION Substantial Completion of the Works When the whole of the Works have been substantially completed and have satisfactorily passed any test on completion prescribed by the Contract, the Contractor may give a notice to that effect to the Engineer accompanied by an undertaking to finish any outstanding work during the Defects Liability Period. Such notice and undertaking shall be in writing and shall be deemed to be a request by the Contractor, for the Engineer to issue a Certificate of Substantial Completion in respect of the Works. The Engineer shall, within twenty-one (21) days of the date of delivery of such notice either issue to the Contractor, with a copy to the Employer, a Certificate of Substantial Completion stating the date on which, in his opinion, the Works were substantially completed adjusted in accordance with the Contract or give instructions in writing Documents). Inasmuch as failure to achieve Substantial Completion and Final Completion of the Contractor specifying all Work within the work which, time prescribed in the Engineer's opinionSOW will result in damages to Owner, requires and as the damages arising from such failure cannot be calculated with any degree of certainty, it is agreed that if Contractor does not achieve Substantial Completion and/or Final Completion of the Work within the time prescribed in the SOW, or within such further time, if any, as shall be allowed for time extensions in accordance with the provisions of the Contract Documents, Contractor shall be required to be done by pay to Owner as liquidated damages for such delay, and not as a penalty, the Contractor before amount of construction cost x .07/365 or $100, whichever is greater, for each day elapsing between the issuance of such Certificatedate fixed for Substantial Completion and/or Final Completion and the date Substantial Completion and/or Final Completion is fully achieved. The Engineer shall also notify Parties agree that said liquidated damages are reasonable given existing circumstances, including the range of harm that is foreseeable and the anticipation that proof of damages would be costly and impractical. Contractor hereby expressly waives and relinquishes any right which it may have to seek to characterize the above noted liquidated damages as a penalty. It is further mutually understood and agreed that Owner’s assessment of any defects liquidated damages for delays pursuant to this Section is intended to compensate Owner solely for Contractor’s failure to achieve Substantial Completion and/or Final Completion of the Work within the time prescribed in the Works affecting substantial completion that may appear after such instructions SOW, and before completion shall not release Contractor from liability from any other breach of requirements of the work specified thereinContract Documents. The Contractor If the liquidated damages set forth herein are deemed unenforceable for any reason, Owner instead shall be entitled to receive such Certificate recover those actual delay damages that it sustained as a result of Contractor’s failure to achieve Substantial Completion within twenty-one (21) days of completion, to the satisfaction of the Engineer, of the work so specified and making good any defect so notified. Upon issuance of the Certificate of Substantial and/or Final Completion of the WorksWork. Liquidated Damages for failure to achieve Final Completion shall not be stacked on top of Liquidated Damages for failure to achieve Substantial Completion. Liquidated Damages shall not be assessed against Contractor in the event of Owner delay; however, the Contractor in event of concurrent delay by Owner and Contractor, Liquidated Damages shall still be deemed to have undertaken to complete with due expedition any outstanding work during the Defects Liability Periodassessed.

Liquidated Damages for Delay. If the 7.1 Contractor shall fail to complete achieve Substantial Completion and Final Completion of the Works Work within the time for completion prescribed in the Contract, or any extended time for completion in accordance with the Contract, then the Contractor shall pay to the Employer the sum specified in the Contract as liquidated damages, for the delay between the time prescribed in the Contract or the extended time for completion, SOW (as the case may be, and the date of substantial completion of the Works as stated in the Certificate of Substantial Completion, subject to the applicable limit stated in the Contract. The said sum shall be payable by the sole fact of the delay without the need for any previous notice or any legal proceedings, or proof of damage, which shall in all cases be considered as ascertained. The Employer may, without prejudice to any other method of recovery, deduct the amount of such liquidated damages from any monies in its hands due or which may become due to the Contractor. The payment or deduction of such damages shall not relieve the Contractor from his obligation to complete the Works or from any other of his obligations and liabilities under the Contract. If, before the time for completion of the whole of the Works or of a Section of the Works, a Certificate of Substantial Completion has been issued for any part or Section of the Works, the liquidated damages for delay in completion of the remainder of the Works or of that Section may, for any period of delay after the date stated in such Certificate of Substantial Completion, and in the absence of alternative provisions in the Contract, be reduced in the proportion which the value of the part or Section so certified bears to the total value of the whole of the Works or Section, as applicable. The provisions of this Sub-Clause shall only apply to the rate of liquidated damages and shall not affect the limit thereof. CERTIFICATE OF SUBSTANTIAL COMPLETION Substantial Completion of the Works When the whole of the Works have been substantially completed and have satisfactorily passed any test on completion prescribed by the Contract, the Contractor may give a notice to that effect to the Engineer accompanied by an undertaking to finish any outstanding work during the Defects Liability Period. Such notice and undertaking shall be in writing and shall be deemed to be a request by the Contractor, for the Engineer to issue a Certificate of Substantial Completion in respect of the Works. The Engineer shall, within twenty-one (21) days of the date of delivery of such notice either issue to the Contractor, with a copy to the Employer, a Certificate of Substantial Completion stating the date on which, in his opinion, the Works were substantially completed adjusted in accordance with the Contract or give instructions in writing Documents). Inasmuch as failure to achieve Substantial Completion and Final Completion of the Contractor specifying all Work within the work which, time prescribed in the Engineer's opinionSOW will result in damages to Owner, requires and as the damages arising from such failure cannot be calculated with any degree of certainty, it is agreed that if Contractor does not achieve Substantial Completion and/or Final Completion of the Work within the time prescribed in the SOW, or within such further time, if any, as shall be allowed for time extensions in accordance with the provisions of the Contract Documents, Contractor shall be required to be done by pay to Owner as liquidated damages for such delay, and not as a penalty, the Contractor before amount of Project Price x .07/365 or $100, whichever is greater, for each day elapsing between the issuance of such Certificatedate fixed for Substantial Completion and/or Final Completion and the date Substantial Completion and/or Final Completion is fully achieved. The Engineer shall also notify Parties agree that said liquidated damages are reasonable given existing circumstances, including the range of harm that is foreseeable and the anticipation that proof of damages would be costly and impractical. Contractor hereby expressly waives and relinquishes any right which it may have to seek to characterize the above noted liquidated damages as a penalty. It is further mutually understood and agreed that Owner’s assessment of any defects liquidated damages for delays pursuant to this Section is intended to compensate Owner solely for Contractor’s failure to achieve Substantial Completion and/or Final Completion of the Work within the time prescribed in the Works affecting substantial completion that may appear after such instructions SOW, and before completion shall not release Contractor from liability from any other breach of requirements of the work specified thereinContract for Continuing General Contractor Services. The Contractor If the liquidated damages set forth herein are deemed unenforceable for any reason, Owner instead shall be entitled to receive such Certificate recover those actual delay damages that it sustained as a result of Contractor’s failure to achieve Substantial Completion within twenty-one (21) days of completion, to the satisfaction of the Engineer, of the work so specified and making good any defect so notified. Upon issuance of the Certificate of Substantial and/or Final Completion of the WorksWork. Liquidated Damages for failure to achieve Final Completion shall not be stacked on top of Liquidated Damages for failure to achieve Substantial Completion. Liquidated Damages shall not be assessed against Contractor in the event of Owner delay; however, the Contractor in event of concurrent delay by Owner and Contractor, Liquidated Damages shall still be deemed to have undertaken to complete with due expedition any outstanding work during the Defects Liability Periodassessed.