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What is Liquidated Damages

What is Liquidated Damages

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What is Liquidated Damages?

Liquidated damages are the amount of money that, if the Contractor fails to complete the whole or any specified Section of the Works by the due date. Liquidated damages can be deducted by the Employer or recover from the Contractor. The daily amount of money is specified in the contract up to a given maximum amount. If the works are handed over on a piecemeal basis, the amount of liquidated damages is reduced proportionately.

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