Liquidated Damages (LDs) are a pre-agreed sum, fixed in a construction or supply contract, that the responsible party must pay for defined breaches such as late completion or failure to meet a performance target. In data-center delivery they are typically set as a daily or weekly rate for delay to practical completion, giving the owner a contractual remedy without having to prove actual loss, provided the figure is a genuine estimate rather than a penalty.
Category: Project Delivery & Commercial · Subcategory: Commercial & Contracts · Part of the AIDC Technical Terminology reference.