Schedules are tight, but the end is
near. Your project looks like it will be
completed at the end of the month.
Being on schedule makes you happy
because there is a penalty of $200 a day
if you miss the completion date. But, all
of a sudden, 20 inches of snow falls on
the job site, and shuts the job down for
the rest of the month.
You are now up against what is
known as a liquidated damages clause.
You can’t finish on time because of the
snow. Are you obligated to pay that
$200 a day?
Exceptions to the Rule
The basic legal rule is that when you
made your bid and signed