News & Analysis as of

Breach of Contract Construction Contracts Liquidated Damages

Stoel Rives -  Ahead of Schedule

The Role of Liquidated Damages Provisions in Construction Contracts

Considering all that can go wrong on a construction site, it can seem like a miracle that anything is ever built. Construction projects can be massive undertakings, often with millions of dollars at stake, requiring the...more

Bradley Arant Boult Cummings LLP

Liquidated Damages Disproportionate to Actual Damages Deemed Unenforceable

Construction contacts often include provisions that provide for pre-determined or “liquidated” damages in the event of a breach. Such provisions can provide certainty to the parties as to the consequences of a breach and can...more

BCLP

Can liquidated damages clauses set general cap?

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A pair of cases in the past two years have come to opposite conclusions about whether general damages can be capped by contract provisions for liquidated damages. Liquidated damages clauses are a common feature of...more

A&O Shearman

Watts at stake when there's a delay?

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The High Court has provided guidance on a contractor’s general right to suspend works, the enforceability of liquidated damages upon termination, and the recoverability of financing costs as part of loss of revenue....more

Porter Hedges LLP

Tips on Drafting Enforceable and Effective Liquidated Damages Provisions Under Texas Law

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Liquidated damages provisions are commonplace in construction contracts. One would think that given the strong Texas public policy favoring freedom of contract, bargained for liquidated damages would be easily enforceable in...more

Robinson+Cole Construction Law Zone

A Liquidated Damages Provision Might Not Liquidate All Potential Damages

The purpose of a liquidated damages provision in a construction contract is to establish in advance a fair amount of compensation to the injured party for a breach of contract to avoid spending time and money fighting over...more

White & Case LLP

Managing construction risks in Asia-Pacific: Vietnam

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Changes in the construction law and favorable government policy continue to spur Vietnam's construction industry. Vietnam is the third-largest country in Southeast Asia. Due to favorable government policy and an abundance...more

White & Case LLP

Managing construction risks in Asia-Pacific: Singapore

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With a significant and coherent body of case law on construction disputes, Singapore is a hub for resolving many construction disputes across the Asia-Pacific region. Singapore is a vibrant country in Southeast Asia. With...more

White & Case LLP

Managing construction risks in Asia-Pacific: Philippines

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The Philippines construction industry is expected to grow with the introduction of the "Build, Build, Build" initiative and the amendment of a number of laws that would loosen restrictions on foreign investment. The...more

White & Case LLP

Managing construction risks in Asia-Pacific: Indonesia

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The construction industry in Indonesia has long been considered the backbone of the country's economic and social development, and regulations are being continuously amended to ease complexity and expedite processes for...more

BCLP

Third time lucky: Supreme Court allows recovery of liquidated damages in Triple Point v PTT

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Those you of you with an interest in construction law will no doubt have heard of the case of Triple Point v PTT, which concerned whether liquidated damages (LDs) are payable in the event of termination. The first...more

Ward and Smith, P.A.

Issues Impacting Enforceability of Liquidated Damages in Construction Contracts

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Liquidated damages are a sum specified in a contract as the measure of recovery in the event of a breach of the contract. Liquidated damages provisions are common in construction contracts to guard against damages that the...more

Cohen Seglias Pallas Greenhall & Furman PC

[Webinar] Stipulated Sum and Liquidated Damages in Infrastructure Projects: What Are They, Are They Enforceable, and How Do You...

Most parties on a construction project know that a liquidated damage may be assessed for each day of the delay past a contract completion date. However, in infrastructure and highway contracts, there are many different events...more

Bennett Jones LLP

Supreme Court May Consider Enforceability of Liquidated Damages

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On July 11, 2019, the Supreme Court of Canada (the SCC) granted leave to appeal from the Alberta Court of Appeal's decision in Capital Steel Inc v Chandos Construction Ltd, 2019 ABCA 32 [Chandos]. In a previous blog post, we...more

Troutman Pepper

GAR Know-How Construction Arbitration - United States

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Legal System - 1. Is your jurisdiction primarily a common law, civil law, customary law or theocratic law jurisdiction? Are the laws substantially derived from the laws of another jurisdiction and, if so, which? What...more

Troutman Pepper

New York Court Holds Contractor’s Failure to Timely Pass Through Subcontractor Delay Claim to the Owner Constitutes Breach of the...

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Rad and D’Aprile, Inc. v. Arnell Construction Corp, No. 502464/14, 2019 BL 131606 (NY. Sup. Ct. April 3, 2019) - In June of 2001, Arnell Construction Corp. (“Arnell”) entered into a prime contract to build two sanitation...more

Snell & Wilmer

Who says you can’t choose between liquidated damages or actual damages?

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In Colorado, courts enforce liquidated damages provisions if three elements are satisfied: (1) the parties intended to liquidate damages; (2) the amount of liquidated damages was a reasonable estimate of the presumed actual...more

Faegre Drinker Biddle & Reath LLP

Liquidated Damage Provisions – A Good Idea or an Unenforceable Penalty?

Construction contracts often contain a provision for a stipulated or “liquidated” damage amount in the event of specified contract breaches. These provisions can be an effective tool to recover losses that otherwise may go...more

Troutman Pepper

Fourth Circuit Affirms Dismissal of Contractor’s Complaint, Declining to Create ‘Ultra Vires’ or ‘Bias’ Exceptions to the...

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Balfour Beatty Infrastructure, Inc. v. Mayor and City Council of Baltimore, 2017 U.S. App. Lexis 7252 (4th Cir., April 25, 2017) - The United States Court of Appeals for the Fourth Circuit recently addressed whether the...more

Snell & Wilmer

Under Construction - June 2017

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Welcome to the summer 2017 edition of our Under Construction newsletter. In this issue, to accompany the summer heat, we highlight several hot topic items affecting the construction industry, such as the recent revisions to...more

Troutman Pepper

Ohio Supreme Court Holds Reasonableness of Liquidated Damage Provision to Be Determined Based Upon the Parties’ Knowledge at Time...

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Boone Coleman Constr., Inc. v. Vill. of Piketon, 2016-Ohio-628, 2016 Ohio LEXIS 441 (Ohio Feb. 24, 2016) - A general contractor entered into a construction contract with a public agency for a road construction project...more

Baker Donelson

Finally - A Different Result for a Government Contractor's Differing Site Condition Claim

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For any government contractor that has had a differing site condition claim denied despite relying on a government geotechnical report about the subsurface conditions of the project site, the U.S. Court of Appeals for the...more

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