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Liquidated damages in construction contracts

Liquidated damages are a pre-agreed amount of money that is set out in advance in the contract that fixes the sum payable as damages if the contractor breaches the contract – typically by failing to complete the construction works by the completion date set out in the contract. Liquidated damages are not penalties but rather they are preset damages agreed at the time that a contract is entered into and based on a calculation of the actual loss likely to be incurred if the contractor fails to meet the completion date. Typically they are calculated on a daily or weekly basis.

Clauses to include liquidated damages are commonly used in construction contracts as a solution to deal with specified breaches to make the recovery of damages easier and quicker.  Contracting parties are generally free to agree to whatever terms they like. However, the courts have refused to enforce liquidated damages which are deemed to be a penalty so it essential that sufficient care is taken before contracts are entered into to fully assess the potential costs of delays by the contractor while resisting the temptation to over-estimate them. Click here for an article by DAC Beachcroft about pitching damages at the right level.

General Data Protection Regulation (GDPR) – Are You Ready?

The General Data Protection Regulation (GDPR) and Data Protection Act 2018 replace existing data protection laws in May 2018.

How we use data in modern business practices has changed significantly since the late 90s so data regulation needed to change with the times.

GDPR gives additional rights for people in relation to the information that companies hold about them, obligations for better data management for businesses, and a new regime of fines if businesses don’t comply.

It will impact every single business that handles personal data.

Whilst the accountability for adoption and compliance usually sits with the management team, every customer-facing role in your business needs to be aware of the implications as the fines for breach are significant.

For more information click here for an article by DAC Beachcroft