Construction Management
5th Edition
ISBN: 9781119256809
Author: Daniel W. Halpin, Bolivar A. Senior, Gunnar Lucko
Publisher: WILEY
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Question
Chapter 3, Problem 1RQE
To determine
The differences between “liquidated damages” and a “penalty” for the late completion of the contract.
Expert Solution & Answer
Explanation of Solution
The difference between the “liquidated damages” and a “penalty” for the late completion of the contract is as follows:
The difference between the former and the latter is that the liquidated damages is the sum of money that the concerned project owner loses for not completing the project, whereas the penalty for the late completion of the contract simply means that the contractor needs to pay a fine for not completing the work on time or rather completing the work after the due time. It is unrelated. It differs from liquidated damages, which can be shown by the project owner for receiving the finished work late.
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Chapter 3 Solutions
Construction Management
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.Similar questions
- How is time measured in construction contracts? Provide and example of a type of project that would be suited for each way. What are liquidated damages and what are the consequences of not including liquidated damages provision on a project? How are liquidated damages related to consequential damages?arrow_forwardWhat actions can be taken to collect liquidated damages for the failure of a contractor to meet various key dates for the completion of work?arrow_forwardWhat are the liquidated damages?arrow_forward
- What are some strategies for resolving disputes related to non-performance of a contract?arrow_forwardwhat grounds and to what extent could damages be claimed in a contract?arrow_forwardBriefly describe what are some strategies for resolving disputes related to non-performance of a contract?arrow_forward
- In preparing to bring a dispute to some kind of resolution,what measures should be taken by the contractor?arrow_forwardLiquidated damages are intended to represent anticipated losses to the owner based upon circumstances existing at the time the contract was made. List at least five types of potential losses to the owner that would qualify for determination of such potential losses.arrow_forwardIs litigation more preferable or the arbitration more preferred by the contractor?arrow_forward
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