Start Liquidating damages on form hud 2442

Liquidating damages on form hud 2442

Hence, a liquidated damage provision provides a straight forward method of calculating damages recoverable by an owner in the event of late completion.

If the prime contractor is five days late in substantially completing their work, they owe the owner $5,000.

The owner usually deducts the $5,000 from a payment to the contractor. What I do see often though are disputes over liquidated damages.

I can’t recall ever seeing a contractor actually pay liquidated damages to an owner. They usually center around two issues: (1) whether a contract’s liquidated damages clause is enforceable and (2) how much in liquidated damages does one party owe the other.