Liquidated Damages in Real Estate Construction Contracts Misconceptions

Many times we at Gem Engserv Pvt. Ltd. get assignments that require us to review the construction contract documents for the Developers. More often than not we come across incorrectly drafted contract clauses that are really hard to correct unless redrafted.

I am going to discuss the commonly occurring mistakes that we have come across.
First mistake is that liquidated damages are confused with withholding money. The developer intends to withhold certain part of the Contractor’s dues for a default during the tenancy of the contract and on the rectification or mitigation