By Bruce Jervis
Liquidated damages are assessed against contractors for late completion of a project. They are intended to compensate project owners for the costs of an extended construction period and the delayed use of the facility. Liquidated damages clauses are generally enforceable if the daily rate represents a reasonable forecast, at the time of contract formation, of the owner’s actual costs. If the daily rate is arbitrary – merely an incentive for timely completion by the contractor – the clause may be ruled an unenforceable penalty.
On public works projects, the determination of the daily rate of liquidated damages is controversial. Public project owners do not have construction loans. Completed public projects do not generate revenue. What are the owner’s costs of late completion? They are primarily extended inspection and administration costs. Read more.
Last month in ConstructionPro Week, we presented an overview of the results of our January 2015 Estimating Survey, including methods used to perform take-offs, sources of cost/pricing data, use of technology and overall satisfaction ratings. The survey also asked readers to share three best practices for developing a solid estimate. Here’s what we learned: ... Read more.
Software Advice, an online service intended to help match prospective buyers to software companies, has conducted its own surveys over the past few years. In 2013, it reported that 49% of its survey participants used spreadsheets, supporting ConstructionPro Network’s findings (17% of respondents still prepare an estimate manually, with 46% using a spreadsheet and 31% using an estimating program). Read more.