Liquidated damages

A liquidated damages clause in contract specifies a sum of money that will be payable as damages if a party breaches a particular term of the contract.

Liquidated damages are mainly used for late completion of works and are also sometimes used to compensate employers for failure to meet specified performance targets.

This section is maintained by Oliver Johnson and Sarah Rock of Boodle Hatfield LLP.

RICS standards: Cost reporting

Feature: Legal questions: liquidated damages