Liquidated damages

All domestic contracts should show a completion date. Failure to meet the deadline will mean the person or organisation responsible will have to pay a penalty for every day the project is over the completion date. The amount to be paid is set out in the contract. If the deadline is not met, the final contract price will need to be changed.

If the builder is responsible for the delay, they would need to pay an amount specified in the contract to the client.

If the client is responsible for the delay, the client pays a penalty to the builder and the builder will be entitled to an extension of time equal to the delay.

Photo of the builder paying money to the client then the client paying money to the builder.