Liquidated Damages Calculator

LD clauses define fixed daily penalty for delays in GC contracts. This calculator computes owed amount and compares to cap.

Delay days

LD rate per day

Contract cap

LD owed (after cap)

$75,000

Gross LD calculation

$75,000

Days to hit cap

How the math works

LD = days × rate, capped by contract. Negotiate both rate and cap at contract signing.

LD caps protect GC from catastrophic liability; rates compensate owner for real economic loss. Balance both for enforceable and fair clause.

How to Use

Enter days past substantial completion.
Enter LD per day.
Enter contract cap.
Read owed amount.

Frequently Asked Questions

Are LD enforceable?

Yes if 'reasonable estimate' of actual damages — not a penalty. Courts strike down LD that are punitive. Set LD at roughly lost rent + extra carry for legal enforceability.

Typical rates?

Residential single-family: $500-$2,000/day. Mid-market multifamily: $2,000-$7,500/day. Institutional development: $10k-$50k/day. Higher for time-sensitive retail openings.

What about owner delay?

Owner-caused delays (change orders, permit delays, site access) excused under most contracts. Clear documentation required to preserve LD against contractor.

Who owns this risk — sponsor or lender?

Construction risks are typically shared: hard-cost overrun owned by sponsor (via completion guaranty), soft-cost and delay risks shared per contract, force-majeure excused but bears owner carry cost. Document risk ownership in the loan agreement and GC contract before closing. Disputes get expensive when roles are unclear. Institutional deals spell out every allocation in writing.