Liquidated Damages (LDs)
Definition
Liquidated damages (LDs) are a pre-agreed sum specified in the contract that the contractor must pay the employer for each day (or week) of delay beyond the completion date. LDs represent a genuine pre-estimate of the employer's loss from late completion and avoid the employer needing to prove actual loss.
In construction tendering, this means...
LD rates need to be carefully considered when preparing a tender. High LD rates significantly increase the contractor's risk profile and should be reflected in the tender price. If the LD rate appears to be a penalty (disproportionate to likely actual loss), it may be unenforceable, though challenging this is expensive and uncertain.
Takshy automates the parts of the tendering process that involve liquidated damages (lds), extracting scope, managing documents, and keeping your workflow organised from first document to final award.
Automate your tendering with Takshy
Understanding the terminology is step one. Takshy handles the rest, from extracting scope from project documents to sending structured RFQs and managing the returns.
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