How enforceable is a liquidated damages clause in a client contract?
#1
I just had a client ask me to sign a contract that includes a clause about liquidated damages for late delivery, and I'm not sure if it's fair or even enforceable. The amount seems pretty steep compared to the project fee, and I'm worried about what happens if we hit an unexpected delay.
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#2
Honestly, I’ve run into liquidated damages clauses that feel punitive more than fair. I wouldn’t panic, but I did push back to add a cap or tie the damages to the project value, otherwise it can balloon fast if a delay isn’t your fault. I’ve seen clients blink and sign when the numbers look reasonable, so negotiation matters.
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#3
From a non lawyer practical stand, enforceability depends on where you are and the exact math. If the clause makes the penalty vastly exceed actual damages, some courts treat it as a penalty not a pre estimate of loss. A safe move: ask for a cap, or make the damages proportional to the value of the work, or include a grace period for genuine delays.
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#4
I keep thinking maybe this is a scare tactic more than a real risk, like delays come from weather or procurement on my end, not just a contract thing. Do you think the clause is the real problem or is the bigger issue the project scope?
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#5
One time I tried a different approach, asked for a delivery schedule with milestones and tied any penalties to actual documented delays, not a fixed rate. It bought time, but I still don’t feel 100% sure.
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