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Sitework Delay Penalty Calculator

Sitework delays compound through every downstream trade.

$
$

Total delay penalty

$765,000

Liquidated damages total

$225,000

Carry cost total

$540,000

How the math works

LD = delay × daily LD. Carry = delay × daily carry. Total = LD + carry.

45 days × ($5k LD + $12k carry) = 45 × $17k = $765k total delay cost.

How to Use

  1. Enter original sitework completion date offset days.
  2. Enter actual delay days.
  3. Enter daily liquidated damages.
  4. Enter daily project carry cost.
  5. Read total delay penalty.

Frequently Asked Questions

Why is sitework delay so expensive?

Sitework (grading, utilities, paving, foundations) is the first trade on-site and gates every subsequent trade. A 30-day sitework delay cascades into 30 days of delay for framing, MEP rough-in, exterior, interior, and finishes — each separately staffed. Multiplier effect: 30 days of actual sitework delay often = 45-60 days of total project delay due to re-sequencing challenges. LDs alone don't capture full cost.

Typical LD structures?

Commercial/institutional: $1,500-10,000 per day depending on size. Multifamily: $2,500-15,000 per day. Healthcare/hospital: $10,000-50,000 per day. Residential single-family: often none (unenforceable in most consumer contracts). LD must be set at contract signing to be enforceable; cannot be punitive. Most GC contracts cap LD at 10-20% of total contract value to prevent runaway exposure.

Excused delays?

Weather (beyond normal seasonal), force majeure (pandemic, natural disaster, war, strike), owner-caused delay (drawing changes, permit delays on owner side, restricted site access), unforeseen subsurface conditions (rock, buried debris, contaminated soil). Each excused day shifts completion date but typically doesn't trigger LDs. Document each excused day with photos + daily log — without documentation, you're assumed at-fault.

What about lost revenue?

Multifamily delay: lost lease-up revenue ($200-600 per unit per month). Commercial: lost rent commencement (often $1-5M for large projects). Hotel: lost RevPAR during construction season. This rarely shows up in LD (usually capped too low) — sponsors carry real economic exposure far above LD amount. Institutional lenders factor this into refinance timing, so delays also shift debt schedule unfavorably.

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