Contractors should be aware that the owner’s issuance of a change order after the original completion date may not serve to waive liquidated damages for contractor-caused delays prior to the date of the change order. Holloway Consulting’s experiences as Construction Scheduling Consultants is that change orders can, however, can cause problems to owners with respect to liquidated damages.
Construction Scheduling Consultants
Liquidated Damages Claims
If the owner includes a reservation of rights for liquidated damages in one change order but fails to do so in subsequent change orders, this inconsistency may indicate a waiver of liquidated damages. As Construction Scheduling Consultants, Holloway Consulting advise our owner clients to reserve its rights for liquidated damages in all change orders, especially if the change orders are dated after the contract completion date. Liquidated damages may be waived by the owner if no claim for such damages is made prior to final payment.
CONSTRUCTION SCHEDULING CONSULTANTS
Liquidated Damages Waivers
Liquidated Damages Waivers may have been waived, if the Construction Owner:
1. Failed to put the contractor on notice that it intended to enforce the liquidated damages provision after a delay has occurred,
2. Allowed the contractor to complete the work after the scheduled completion date had passed, or
3. Continued to make progress payments without a deduction for liquidated damages.