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Warren is a clinical psychologist and author of eight books on love, marriage and emotional health.

Liquidating damages calculation for hud construction

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Usually they apply to some specific type of breach of the contract, not any breach of any promise anywhere in the contract.

A contractor cannot successfully urge that because critical contractor-caused delays . See : Liquidated damages are generally used where it is difficult, if not impossible, to accurately estimate the harm to the agency if late, unexcused performance of the contract occurs.Use a maximum amount or a maximum period for assessing liquidated damages if these limits reflect the maximum probable damage to the Government.Also, the contracting officer may use more than one liquidated damages rate when the contracting officer expects the probable damage to the Government to change over the contract period of performance.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.Why Have Liquidated Damages In A Construction Contract?Frequently you’ll see some formula for liquidated damages.