TAKING A PENALTY

摘要

I reckon that liquidated and ascertained damage (LAD) clauses for delay do more harm than good. The game goes like this: "Team Contractor", at bid stage, is told that if he wins the job, but fails to complete on time, his bank account is raided to the tune of £xx per day, week, month, year. "Team Employer" has a permanent glint in his eye for nabbing that cash. It's a pong in the relationship. Often enough there is a dispute about extensions of time to win relief from the liquidated damages claim. Sometimes the clause is also argued to be a penalty and therefore unenforceable. All this brings much joy to the gamesmanship of dispute.