A subcontractor's work is 30 days behind schedule due to their own delays. The general contractor faces liquidated damages of $2,500 per day from the owner. What is the subcontractor's likely liability under a typical flow-down clause?
Correct Answer
A) $75,000 in liquidated damages caused by their delay
Flow-down clauses typically make subcontractors liable for liquidated damages caused by their delays: 30 days × $2,500 = $75,000.
Why This Is the Correct Answer
Flow-down clauses typically make subcontractors liable for liquidated damages caused by their delays: 30 days × $2,500 = $75,000.
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