Liquidate damage clauses on GC contract

[Naz Hossain]

Hi BP! I am looking to sign a contract with my GC i will be working with for the first time on a BRRRR project. An area the GC and I are having trouble aligning is the liquidate damage clause where a delay in the finish date of the project will have a percentage deducted from his final payment. But it also gives him a bonus for finishing the project ahead of schedule. The GC said that he does not agree with the clauses as the contract does not specify variables like response time from me(investor), delays caused by rain or other natural and unforeseen circumstance.

My question is how do most people ensure that the project is completed on time? Is there an alternative to the liquidate damage clause or should I start to specify the variables in the contract ( i am assuming there will be a lot )

T.I.A

[Wayne Brooks]

When you have LD’s in a contract, you also have to define what things extend the completion time....unforeseen conditions, additional work requested/required, weather, etc.

It’s hard to get a contractor to agree to LD’s on such a small job..