Recovery of damages beyond the limit of unenforceable liquidated damages clause

Standard forms of construction contracts typically include a liquidated damages provision entitling the employer a specified sum if the contractor is late in completing a work. However, such clause can be unenforceable due to a myriad of reasons, such as when time is at large. If that happens, the e...

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Main Author: Zainudin, Zulhilmi
Format: Thesis
Language:English
Published: 2017
Subjects:
Online Access:http://eprints.utm.my/id/eprint/87198/1/ZulhilmiZainuddinMFAB2017.pdf
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spelling my-utm-ep.871982020-11-30T09:00:43Z Recovery of damages beyond the limit of unenforceable liquidated damages clause 2017 Zainudin, Zulhilmi TH Building construction Standard forms of construction contracts typically include a liquidated damages provision entitling the employer a specified sum if the contractor is late in completing a work. However, such clause can be unenforceable due to a myriad of reasons, such as when time is at large. If that happens, the employer could not claim liquidated damages but may claim unliquidated damages instead. The issue is then whether the employer may claim unliquidated damages exceeding the sum specified in the liquidated damages provision although the clause is held to be unenforceable. The methodology utilized in this research is mainly through documentary analysis of court rulings. Six cases were shortlisted for analysis based on their relevance to the issue. The findings show that liquidated damages sum in construction contracts is always intended to cap the contractor’s liability for delay, thus, the employer may not recover more than the stipulated sum if the sum represents the parties’ intention even when the liquidated damages clause is unenforceable. 2017 Thesis http://eprints.utm.my/id/eprint/87198/ http://eprints.utm.my/id/eprint/87198/1/ZulhilmiZainuddinMFAB2017.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:132588 masters Universiti Teknologi Malaysia, Faculty of Built Environment Faculty of Built Environment
institution Universiti Teknologi Malaysia
collection UTM Institutional Repository
language English
topic TH Building construction
spellingShingle TH Building construction
Zainudin, Zulhilmi
Recovery of damages beyond the limit of unenforceable liquidated damages clause
description Standard forms of construction contracts typically include a liquidated damages provision entitling the employer a specified sum if the contractor is late in completing a work. However, such clause can be unenforceable due to a myriad of reasons, such as when time is at large. If that happens, the employer could not claim liquidated damages but may claim unliquidated damages instead. The issue is then whether the employer may claim unliquidated damages exceeding the sum specified in the liquidated damages provision although the clause is held to be unenforceable. The methodology utilized in this research is mainly through documentary analysis of court rulings. Six cases were shortlisted for analysis based on their relevance to the issue. The findings show that liquidated damages sum in construction contracts is always intended to cap the contractor’s liability for delay, thus, the employer may not recover more than the stipulated sum if the sum represents the parties’ intention even when the liquidated damages clause is unenforceable.
format Thesis
qualification_level Master's degree
author Zainudin, Zulhilmi
author_facet Zainudin, Zulhilmi
author_sort Zainudin, Zulhilmi
title Recovery of damages beyond the limit of unenforceable liquidated damages clause
title_short Recovery of damages beyond the limit of unenforceable liquidated damages clause
title_full Recovery of damages beyond the limit of unenforceable liquidated damages clause
title_fullStr Recovery of damages beyond the limit of unenforceable liquidated damages clause
title_full_unstemmed Recovery of damages beyond the limit of unenforceable liquidated damages clause
title_sort recovery of damages beyond the limit of unenforceable liquidated damages clause
granting_institution Universiti Teknologi Malaysia, Faculty of Built Environment
granting_department Faculty of Built Environment
publishDate 2017
url http://eprints.utm.my/id/eprint/87198/1/ZulhilmiZainuddinMFAB2017.pdf
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