Civil Engineering Reference
In-Depth Information
11.8 Liquidated damages position under MPF 03
11.8.1 Clause 10
The full text of clause 10 is as follows:
10
Damages for delay
10.1
If the Contractor fails to achieve Practical Completion by the Completion
Date, it shall be liable to pay the Employer liquidated damages calculated at
the rate stated in the Appendix for the period from the Completion Date to
the date of Practical Completion.
10.2 Where liquidated damages have been paid to the employer and the Com-
pletion Date is subsequently adjusted in accordance with clause 12 (
Exten-
sion of time
), the Employer shall be liable to repay to the Contractor any
liquidated damages to which the Employer is no longer entitled.
11.8.2 Significant differences
This is a liquidated damages clause at its simplest. There is no requirement
for a non-completion certificate, therefore, no need to provide for its cancel-
lation and re-issue after a further extension of time. The trigger is the
contractor's failure to complete by the completion date, the rate is stated
in the Appendix and further extensions trigger repayment of any liquidated
damages overpaid. There is no express provision for the employer to deduct
liquidated damages from payments to the contractor, but that does not
appear to preclude the employer from setting off such damages from
payments due to the contractor provided that the relevant withholding
notices are served.
