Step 29: Liquidated Damages
Liquidated damages shall be deducted at the rate per day stated in the Special Conditions of Contract (0.05% of the contract amount) for each day if work is not completed by the Completion Date, however maximum LD could be incurred is upto 10%of the contract amount, refer ▬►PPR-2007, Rule121 ; SBD (for medium contract for construction of bridge) Section IV GCC: clause 48 Liquidated Damages
SBD (for medium contract for construction of bridge) Section IV GCC: clause 48 Liquidated damages
48. Liquidated Damages
48.1 The Contractor shall pay liquidated damages to the Employer at the rate per day stated in the SCC for each day that the Completion Date is later than the Intended Completion Date. The total amount of liquidated damages shall not exceed the amount defined in the SCC. The Employer may deduct liquidated damages from payments due to the Contractor. Payment of liquidated damages shall not affect the Contractor’s liabilities.
48.2 If the Intended Completion Date is extended after liquidated damages 34have been paid, the Project Manager shall correct any overpayment of liquidated damages by the Contractor by adjusting the next payment certificate. The Contractor shall be paid interest on the overpayment of liquidated damage by the contractor, calculated from the date of payment to the date of repayment, at the rates specified in Sub-Clause 42.1.
34 Liquidated damages specified by PPR 2007 is 0.05 percent per day, and the total amount is not to exceed 10 percent of the Contract Price.