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Liquidated damages: Do you really owe them?

By McGREEVY, SUSAN LINDEN
Publication: Contractor
Date: Friday, September 1 2000

While in other industries the thought of having to pay somebody money without that person having to prove that you really caused that much damage might sound outrageous, it has been going on in construction for a long, long time.

Although liquidated damages can be and are frequently enforced by the courts, in many instances they are not enforceable, and contractors need to know the difference.

Liquidated damages are generally enforceable. Liquidated damages used to be disfavored in the law, and courts weren't inclined to enforce them. By inserting liquidated

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