Liquidated damages must relate to actual ones.(McGreevy On Law)

LIQUIDATED DAMAGES are an acknowledged part of life in the construction industry. While people in other lines of work might be surprised that anyone would agree to a pre-set daily fee for something as minor as being late in delivering goods or services, in construction there are good reasons for making such an agreement. They give certainty and predictability to a risk. If classrooms are overcrowded because the new school wasn't finished on time, the school district would have a hard time proving a dollar amount to collect damages. Conversely, contractors prefer liquidated damages