The interaction between the performance and completion conditions in an Engineering, Procurement and Contruction (EPC) contract and the provisions for Performance Liquidated Damages (PLDs) payable under it will vary depending on a number of circumstances, including size, nature and complexity of the project.

Liquidated damages clauses can be an easy-to-use practical solution for breaches of contract, avoiding many of the disadvantages associated with a common law damages claim

In order for liquidated damages to be enforceable and upheld by the courts, it is usually a requirement that they can be shown to be a ‘genuine pre-estimate of loss’, however a recent case shows a shift away from this approach.

Auch „alte Bekannte" haben mitunter noch kleine Geheimnisse: Die Vertragsstrafe und der pauschalierte Schadensersatz sind so alte Bekannte, die in der Beschaffungspraxis täglich zur Terminsicherung eingesetzt werden.

Policies which specifically exclude liquidated damages, for example “arising out of or in any way connected with liquidated damages” have the effect of excluding an entire claim brought by a third party where only part of the claim relates to liquidated damages.

Parties entering into contracts need to be aware that the liquidated damages number that is ‘hotly’ negotiated and agreed, may be varied by a judge or arbitrator where the contract is governed by UAE law. - See more at: http://www.tamimi.com/en/magazine/law-update/section-5/january-2/liquidated-damages.html#sthash.6QEBHTf3.dpuf

A liquidated damages clause sets an amount in a contract in the event of a breach. Think of it as "contract performance insurance."

If the liquidated damages are unreasonable under that forward-look, they are not enforceable at all (Civ. Code § 1671, Pub. Cont. Code § 10226 [State Contract Act], Gov. Code § 53069.85 [local agency public works]). Another example, liquidated damages that may be appropriate for a project as a whole would generally not be reasonable during a plant establishment period, after all other work was completed.

Money may not be the answer to all programs which run late, as delivery on time may be the only priority. All clients want projects to specification and financial remedy is not as satisfying as a perfect project.

Als liquidated damages (englisch liquidierte Schäden) wird im anglo-amerikanischen und internationalen Recht ein pauschalierter Schadenersatz bezeichnet.