A project has liquidated damages of $500 per day for delays. The project is completed 12 days late due to weather delays (8 days) and contractor delays (4 days). What is the contractor's liability for liquidated damages?
Correct Answer
B) $2,000
Liquidated damages typically apply only to delays caused by the contractor, not force majeure events like weather. Therefore, only the 4 contractor-caused delay days apply: 4 days × $500 = $2,000.
Why This Is the Correct Answer
Liquidated damages are contractual penalties that apply only to delays caused by the contractor's actions or negligence. Weather delays are considered force majeure events or acts of God, which are typically beyond the contractor's control and therefore excluded from liquidated damage calculations. Only the 4 days of contractor-caused delays are subject to the $500 per day penalty, resulting in $2,000 in liquidated damages.
Why the Other Options Are Wrong
Option A: $0
Option A is incorrect because there were 4 days of contractor-caused delays that are subject to liquidated damages, so the liability is not zero.
Option C: $4,000
Option C incorrectly includes only the weather delays (8 days × $500 = $4,000), but weather delays are typically excluded from liquidated damage calculations as force majeure events.
Option D: $6,000
Option D incorrectly applies liquidated damages to all 12 days of delay (12 days × $500 = $6,000), including weather delays which are typically excluded as force majeure events.
Memory Technique
Remember 'WELD' - Weather Excludes Liquidated Damages. Only contractor-caused delays get 'welded' with penalty fees.
Reference Hint
Florida Building Code Chapter 1, Section 107 - Construction Documents and Permits, or contract law sections covering liquidated damages and force majeure clauses
More Contract Admin Questions
A project experiences a 30-day delay due to unusually severe weather. The contract includes a liquidated damages clause of $1,000 per day for delays. If the weather delay is excusable but not compensable, what liquidated damages apply?
A commercial project requires a total of 12 inspections. The building department charges $85 per inspection for the first 5 inspections, $65 for inspections 6-10, and $45 for any additional inspections. What is the total inspection fee?
What document must be posted at the job site before a Certificate of Occupancy can be issued for a commercial building?
A mixed-use development requires a variance for reduced setbacks. The property is located within 500 feet of a hospital. What additional consideration must be addressed?
A LEED project requires tracking of regional materials. Materials are considered regional if they are extracted, harvested, or recovered, as well as manufactured within what distance of the project site?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Project Management
60 questions · 70% to pass