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Best Practice: Why Reusing Old Liquidated Damages Clauses Puts Owners at Risk
For private owners, liquidated damages clauses are meant to manage schedule risk. But when those clauses are recycled from old contracts (written for different projects, markets, and risk profiles) they can become unenforceable. Worse, they can backfire at the exact moment you need them most. The Problem: Familiar Language, New Risk Liquidated damages clauses appear…
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Industry Watch: Rethinking Contract Risk, Beyond Schedule-Based Liquidated Damages
I have reviewed many construction contracts over the years.Most of them focus on dates and delay.Very few speak to the risks that cause the greatest harm to owners. Problem and Context A recent Lexology article on data center construction risk offers a strong introduction to liquidated damages, force majeure, and indemnity. It is a useful…