When to call on liquidated damages

摘要

Building contracts generally specify a fixed weekly or daily sum of money (known as liquidated damages) to be used to compensate the employer if a project is handed over late as a result of contractor delay. In the event of such delay, as long as the relevant notices have been given to the contractor, the employer can either deduct the agreed sums from amounts otherwise payable to the contractor, or ask the contractor to reimburse the employer direct. Over the years, cases have provided guidance various issues.