LIQUIDATED DAMAGES | Penalties and What is Unenforceable

Liquidated damages typically flow from delays, but they are not always solidly enforced.

In June 2017, a contractor agreed to construct a new park and elementary school for a city. The project included demolition of an existing park.

The city did not want the neighborhood to go without a park for a long period of time. So, the contract included a deadline for completion and a liquidated damages (LDs) clause for delays beyond that deadline ($1,000 per calendar day).

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Published On: February 24, 2024

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Jonathan J. Straw
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