Can a main contractor recover main-contract liquidated damages from a late subcontractor where the amount exceeds the subcontract value?
Subcontract value does not itself cap the loss caused by subcontractor delay. Recovery depends on breach, causation, the parties' contractual allocation, remoteness and any agreed limitation of liability.
Potentially, yes. The subcontract value alone does not determine the recoverable delay loss
The main contractor must prove that the subcontractor breached its completion obligation and caused liability under the main contract. The relevant main-contract rate should have been disclosed, or otherwise brought within the parties' reasonable contemplation when the subcontract was made. Any subcontract cap or exclusive agreed-damages clause must be applied. The contractor cannot recover both an agreed delay sum and overlapping actual loss for the same consequence.
| Issue | Position |
|---|---|
| Subcontract breach | Late completion must be contractually unjustified |
| Causation | Breach must cause main-contract delay liability |
| Contemplation | Exceptional exposure should be disclosed before contract |
| Subcontract cap | May limit or replace wider damages |
| Overlapping claims | No double recovery for the same delay |
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