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Liquified Damage Example
Liquified Damage Example
First calculate total number of calender days of delay of the project which is to be calculated from
Aug02, 2019 to Dec 12 , 2019
August = 30 days
September = 30 days
October = 31 days
November = 30 days
December = 12 days
Total number of days for which liquidated damages to be paid = 133 days
As per PO, the contractor shall pay the owner an amount equal to 1/10 of 1% of Total contract price for
every calendar day
= (1/10)*(1/100) *(3340753.31)
= PHP 3340.75
But as per agreement conditions Liquidated damage should not exceed 10% of Total Contract price
As the actual Liquidated damage amount PHP 444319.75 should not exceeds agreemnt condition
liquidated damage amount PHP 334075.35 .
So the applicable Liquidated damage to be imposed by the owner to the contractor is = PHP 334075.35