What is a liquidated damages clause intended to do?
Correct Answer
C) Set an agreed daily amount for delay damages when actual damages are difficult to determine.
Liquidated damages set a contract amount for delay, not a penalty or extra-work payment.
Why This Is the Correct Answer
Liquidated damages set a contract amount for delay, not a penalty or extra-work payment.
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The instructions to bidders require bid security equal to 5 percent of the bid amount. A bidder submits a bond for a smaller fixed dollar amount. What controls the required bid security?