Contractor awarded bathroom project will not have it complete for opening of school. Liquidated damages is 1k day in the contract . How can we strengthen our liquidated damage clause if this ever happen again and to prevent this type of scenario?
Great question. There is no maximum LD amount and the proper quantification is a subjective test. LD's must be a resasonable approximation of compensatory (direct) damages and not act as punitive. Hope that helps.