Latest / Architect Exam Podcast
048 - Liquidated Damages: The Price Tag on Being Late
Liquidated damages are basically a prenup for construction projects. Both parties agree on a daily dollar amount before work starts, so nobody has to fight about it later if the project runs late.
Without liquidated damages, an owner has to prove actual losses in court. Those numbers are nearly impossible to prove, and you'd spend years in litigation. Liquidated damages cut through all of that by establishing a fixed daily amount upfront.
We cover how liquidated damages get calculated, when the clock starts at substantial completion, and where the clause appears in AIA contracts. We also…
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