shankce_logo


Home > Tender evaluation and contract award > Liquidated damages for delay / late completion

Liquidated damages for delay / late completion

Some common deviations/exceptions often taken with respect to LD provisions are:

ITT provisions

Exception/deviation by Tenderer

Client position

In the event of there being a delay in achieving the Contract completion date/milestones, Client shall deduct LD @ 0.5 % per week of delay subject to a maximum of 10 % of the total Contract price.

Amend 0.5 % to 0.25 % per week subject to a maximum of 5 % of the Contract price instead of 10 %.

The qualification is of a commercial nature and hence to be examined in light of whether the 5 % covers the direct loss suffered by Client in case of a delay by Contractor.
Further reducing the starting percentage from 0.50 to 0.25 % would allow twice the time required to reach the final 5 or 10 % LD amount thereby implying that the Client is able to tolerate delay for this duration.

Application of LD should start after an initial grace period of 3-4 weeks over the Contract completion date.

Again this is a commercial decision and if a delay in Contractors performance does not have a knock-on effect on the schedule of related downstream activities, such qualification could be examined favorably.

LD to be applied on the uncompleted portion of the Works/Services rather than the total Contract Price

Except in case of stage wise completion of Works/Services, this condition should not be accepted since the delay effects the whole works and hence the damages applied to the total Contract price rather than the uncompleted portion of works.


       Designed & Maintained by Creative Designer