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Edged Sword by Reina Calderon, Esq. JLC · THE LEGAL COLUMN Damages: a Double- Liquidated ECEMBER 1988 D Owners negotiating contracts with general contractors frequently insist on a "liquidated damages" provision. This is a clause that provides for defaults in performance: The defaulter will pay the injured party a sum of money agreed upon by both parties in advance. Having a liquidated damages clause in the construction contract means that if the owner ever sues the contractor for failure to perform, the owner's job in court will be much easier. Theoretically, all that an injured party must do at this point is show that the defaulter failed to perform. He doesn't have to prove how much he suffered (the amount of damages) because the