A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Some contractors and even some architects, who should know better, still refer to penalties or the penalty clause when they actually mean liquidated damages. Fortunately, the courts, arbitrators, and adjudicators do not take much account of the name used, but consider the facts in order to decide whether a clause is a penalty or liquidated damages. This is important because penalties are unenforceable. Having said that, it is rare for liquidated damages to be held to be a penalty on that basis alone. However, it is possible for the sum to be considered a penalty in certain circumstances. Some employers look upon the liquidated damages clause as a means of compelling the contractor to finish on time. On that basis, the sky would be the limit for the sum. That idea is exactly what the penalty rule is intended to stop.
Some contractors and even some architects, who should know better, still refer to penalties or the penalty clause when they actually mean liquidated damages. Fortunately, the courts, arbitrators, and adjudicators do not take much account of the name used, but consider the facts in order to decide whether a clause is a penalty or liquidated damages. This is important because penalties are unenforceable. Having said that, it is rare for liquidated damages to be held to be a penalty on that basis alone. However, it is possible for the sum to be considered a penalty in certain circumstances. Some employers look upon the liquidated damages clause as a means of compelling the contractor to finish on time. On that basis, the sky would be the limit for the sum. That idea is exactly what the penalty rule is intended to stop.
Penalties
Chappell, David (author)
2020-01-07
1 pages
Article/Chapter (Book)
Electronic Resource
English
| Wiley | 2001
Liquidated Damages and Penalties
| Wiley | 2008
Online Contents | 1996
Civil Penalties: Policy Review Sessions
NTIS | 1982
Penalties Upheld for SDWA Violations
Wiley | 1996