Liquidating damages on fha forms 2442 or 2442a brett micheals dating
Liquidated damages clauses should be tailored to the specific situation — this is particularly important because courts won’t enforce penalty provisions.
Also, the contracting officer may use more than one liquidated damages rate when the contracting officer expects the probable damage to the Government to change over the contract period of performance.
This may mean the employer has to incur additional costs or suffer a delay in receiving income from the project.
For the contractor, delay to the completion of the project may result in a liability for delay damages to the employer.
A liquidated damages clause specifies a predetermined amount of money that must be paid as damages for failure to perform under a contract.
The amount of the liquidated damages is supposed to be the parties’ best estimate at the time they sign the contract of the damages that would be caused by a breach.
Although it is worth remembering that liquidated damages can be used in other circumstances, this guide will focus on LDs for delay.