Liquidated Damages

Yesterday we received notice of our liquidated damages. Basically, after taking an extra 22 weeks than the contract sign date, they've claimed 3 weeks extension for the 3 weeks until site start, 5 weeks for over Christmas because the contract says they can, even though their workers were back after 2 weeks and another 8 weeks of weather delays. The overall amount was 6 weeks x the rental guarantee of $380 per weeks. They've tried to get out of the additional penalties listed in the contract.

Eight weeks of weather delays is a bit much even though we had some rain. We've asked for a breakdown of which days they are claiming and what trades could not work those days because the contract still states that the "in the reasonable opinion of the builder" work could not be carried out. If the trades involved are plasterers, how can they claim rain delays?

The most ridiculous comment was when they claimed in their letter of damages that we hadn't paid within 5 days of the invoice date. Our first invoices were received on 5th November 2007, with an invoice date of 19th October. The builder has obviously back-dated the invoices.

Have a look back at some of our posts where you can see the progress, considering the brickwork claim was dated 16th November 2007 (brickwork was clearly not complete). The internal linings invoice is dated 21st December 2007 (the roof was still being done and the insulation and electrical hadn't been started).