May a subcontract prescribe an all-embracing liquidated-damages remedy for late completion?
Yes. A subcontract may fix an agreed daily or weekly remedy for delay, provided the clause is properly triggered, proportionate to the protected interest and coordinated with any pass-through or actual-loss provisions.
Yes. A subcontract may fix an all-embracing delay remedy, but its scope and relationship with other loss must be stated clearly
The clause should identify the subcontract completion obligation, rate, period, cap, extension machinery and whether the agreed sum is the exclusive remedy for delay. The calculation should reflect the likely effect of the package, including main-contract exposure only where that is a rational project risk. The contractor cannot recover the agreed sum and overlapping pass-through or disruption loss for the same delay consequence.
| Issue | Position |
|---|---|
| Subcontract completion date | Must be clear and adjustable for stated events |
| Agreed delay rate | May include rational main-contract exposure |
| Criticality | Assess the package at contract formation |
| Exclusive-remedy wording | State whether actual delay loss is displaced |
| Other claims | Remove duplication with the agreed sum |
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