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Owner Lost Right To Assess Liquidated Damages Liquidated Damages; Schedule

Friday, March 03, 2006 05:24 pm

Owner Lost Right To Assess Liquidated Damages Liquidated Damages; Schedule

A federal appeals court has ruled that a private project owner waived a completion deadline and lost the right to assess liquidated damages by allowing construction to continue without setting a new deadline.

RDP Royal Palm Hotel, L.P. awarded a contract to Clark Construction Group, Inc. to construct a hotel in Miami Beach, Florida. The contract called for substantial completion within 518 calendar days, with liquidated damages to be assessed for late completion. Clark guaranteed a maximum price, but both the price and the completion deadline were to be adjusted to account for ch [...]

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