Does a late extension-of-time decision prevent the employer from recovering liquidated damages?
Not necessarily. A missed decision period does not automatically invalidate a later extension assessment or the employer's delay remedy. The result depends on the wording, the contractual consequence attached to lateness and whether a reliable completion date can still be established.
A late decision is not automatically fatal unless the contract makes timely compliance a condition of the remedy or provides a different stated consequence
Read the particular clause before deciding the consequence. A timescale may direct prompt administration without making time essential. Other contracts impose deemed acceptance, loss of power or another express result after a notice sequence expires. Even where lateness does not remove liquidated damages, the contractor may have a separate remedy for loss caused by defective administration.
| Issue | Position |
|---|---|
| Directory timescale | Late decision may remain valid |
| Express condition precedent | Non-compliance may defeat the stated right |
| Deemed contractual outcome | Apply the specified notice sequence exactly |
| No reliable completion date | Liquidated-damages calculation may fail |
| Loss caused by late administration | Separate damages issue may arise |
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