Contracts
Liquidated Damages
A pre-agreed daily penalty specified in the contract that the contractor pays the owner for each calendar day the project is completed past the contract completion date.
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In the Field
LD rates can be $500 to $50,000+ per day depending on project type. Protect yourself with a detailed project schedule and document every owner-caused delay and weather event. Time extension requests must be submitted per contract notice requirements — late notices are often denied.
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Rule of Thumb
Submit a written notice of delay within the contract-specified window (commonly 7–14 days of the delay event). Missing the notice deadline can forfeit your right to a time extension and expose you to LDs you legally should not owe.