What do liquidated damages in a construction contract generally represent?
Correct answer: A. A pre-agreed sum for specified delay or breach
- A. A pre-agreed sum for specified delay or breach
- B. A bonus paid for using fewer materials
- C. A tax charged on the contractor's profit
- D. A provisional amount for design development
Explanation
Liquidated damages are an amount agreed in advance to compensate for a specified breach, commonly delay beyond the contractual completion date. They are different from a general material allowance or a performance bonus.
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Construction management covers planning, scheduling, resource control, contracts, procurement, site organisation, safety, quality assurance and project documentation. Estimation includes quantity take-off, rate analysis, bill preparation, valuation and cost control, with attention to the difference between direct and indirect costs and between an estimate, a tender and a final account.
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