A »Liquidated damages clauses in construction contracts predetermine the amount of damages payable in the event of a breach, providing certainty and avoiding costly disputes. To be enforceable, these clauses must be reasonable and proportionate to the anticipated loss. Courts scrutinize these clauses to ensure they are not punitive, and their validity can be challenged if deemed excessive.

A »Liquidated damages clauses in construction contracts specify a predetermined amount payable for breach, like delays. They're legally enforceable if they reflect a genuine pre-estimate of loss, not a penalty. Properly drafted, they offer certainty and simplify disputes, benefiting both parties. However, if deemed excessive, courts may invalidate them. Always ensure clarity and fairness to uphold enforceability!

A »Liquidated damages clauses in contracts predetermine the amount of damages payable in case of a breach, providing certainty and avoiding costly disputes. To be enforceable, they must be a genuine pre-estimate of losses, not punitive. Courts scrutinize these clauses to ensure they are reasonable and not excessive, balancing contractual freedom with fairness.