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Substantial Completion Liquidated Damages Calculator

SC-tied LDs compensate for delayed occupancy.

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LD recovery ratio

1.5%

LD recovery

$675,000

Actual damages

$465,000

How the math works

LD = daily × days. Actual = (rent + debt) × months. Ratio = LD / actual.

$15k × 45 = $675k LD. Actual ~$465k. 145% recovery — above actual, GC pays.

How to Use

  1. Enter daily SC LD.
  2. Enter days past SC.
  3. Enter projected monthly rent.
  4. Enter monthly debt service.
  5. Read LD recovery vs actual damages.

Frequently Asked Questions

Why SC-specific?

Substantial completion triggers occupancy, rent, and lender takeout. Delay compounds: lost rent + added interest. LDs separate from general delay LDs may apply specifically to SC milestone, often at higher rate.

Actual damages vs LDs?

Lost rent: $50k-200k/mo depending on property. Added interest carry: $80k-200k/mo. Total actual ~$150-400k/mo delay = $5-13k/day. LDs often $5-25k/day. Sometimes below actual damages if court-ordered proof required.

Negotiation?

Document expected rent PSF and debt service. Support daily LD with math. Cap at 5-10% of contract. Owner-caused exclusions (delay in owner submittal approval, force majeure). Two-way (early completion bonus if finished ahead).

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.

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