Glossary · L
Liquidated Damages (LD)
A delay charge fixed in the contract in advance, which the client deducts from the contractor when the project finishes late.
What is Liquidated Damages (LD)?
Liquidated Damages (LD) are a pre-agreed sum in a construction contract that the contractor pays for each period of delay. If the contractor does not reach Practical Completion by the agreed handover date and has no approved Extension of Time, the client deducts the sum from the final bill, for example 0.5% of contract value per week, as compensation for lost revenue.
Practical example
A contractor must finish a retail mall by 1 October so the stores can open for the Diwali shopping season. The contract sets LD at ₹5,00,000 per day of delay. The contractor finishes 10 days late. Without having to prove the actual loss in court, the mall owner deducts ₹50,00,000 from the contractor's final RA bill.
In SuperWise
SuperWise computes critical path dates for the schedule and shows the critical path in the Gantt. Each schedule approval saves a baseline, and each task shows its start and finish variance in days against the active baseline. The package-wise schedule summary report lists the delay in days for each package.
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