Construction - Managing a Liquidated Damages Claim

Record the date received, LD rate, period claimed, and total deduction. File the notice in the contract record.

Confirm all employer-caused delay events have been formally notified. Identify any outstanding EOT claims and the adjusted contract completion date.

Apply the contractual daily or weekly rate to the overrun period. Model best-case and worst-case exposure where EOT is in dispute.

Check the client followed correct notice procedure, including issuing a certificate of non-completion. Identify any employer-caused delays not granted as extensions of time.

Accept or challenge the deduction within the contractual timeframe, citing specific clauses and delay events. Clearly separate accepted and disputed elements.

Record the LD amount against the relevant job, update cost-to-complete forecasts, and flag the impact on final account projections.

Track the revised programme weekly against the completion date. Maintain a running LD liability figure and issue further EOT notifications if new delay events arise.

Not tracking contractual EOT notice deadlines, resulting in lost entitlement and LD deductions that cannot be challenged.

Inadequate contemporaneous records of employer-caused delays, making it impossible to substantiate EOT claims after the fact.

Confusion about the correct certificate and notice sequence when an extension of time is granted mid-deduction, leading to unlawful LD withholding going unchallenged.