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some damages are hard to estimate at the beginning of a project delay damages being one example therefore some contracts liquidate or quantify those damages with a fixed periodic amount here is a sample liquidated damage provision contractor acknowledges that if it fails to achieve final completion of the entire work by the completion date owner will incur substantial damages and the extent of such damages are incapable or very difficult of accurate measurement nonetheless the parties agree that for each calendar day after the completion date that the project has not achieved final completion contractor shall be liable to owner in the amount of one thousand dollars this amount represents a good faith estimate by the parties as to the actual future damages that would occur as a result of late completion and it is not a penalty in the absence of a liquidated damage provision a party is likely liable for the other partys actual damages which may be docHub these damages could also in
