Menu

Carlton Fields’ Jim Carney and Daniel Felsen Author Construction Executive Article on Liquidated Damages Clauses

Construction   |   Coronavirus   |   Government Contracts   |   September 22, 2020
Share Share Page

Carlton Fields construction and government contract attorneys Jim Carney and Daniel Felsen authored a Construction Executive article about understanding the use of liquidated damages clauses in construction contracts.

Liquidated damages clauses allow a non-breaching party in a construction contract to receive an agreed-to amount of damages from a breaching party as a substitute for actual damages. This arrangement limits the time, cost, and burden of proving actual damages.

However, parties should be aware of certain aspects of the clause, including the two-part test to determine the clause’s validity, the right to challenge the clause, and the effort involved to estimate potential damages.

The two attorneys advise that liquidated damages clauses provide parties with valuable information to use in assessing their risks and in determining what actions to take during construction.

Read the article.

Subscribe to Publications

Media Inquiries

Contact the Media Team

Disclaimer

The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.