Damages

Question 1

What is the general principle of damages

Answer 1

Damages are a form of payment given to a claimant as compensation for loss and injury

Question 2

Name some situations when a client has a right to make a claim for damages against the contractor

Answer 2

Incomplete work by MC

Defective work by MC

Delay

Failure to comply with Architects Instructions

Question 3

Name some situations when a main contractor has a right to make a claim for damages against the client

Answer 3

Actual proven loss e.g. materials and equipment

Profit the MC has been deprived of

Question 4

What is the difference between liquidated and unliquidated damages?

Answer 4

Liquidated = pre estimated

Unliquidated = not pre estimated

Question 5

What are the advantages and disadvantages of LADS

Answer 5

+
Client does not have to prove their loss
Acts as a cap on the contractors liability on the specified breach
Reduce the need for costly and timely court proceedings

-
Of the pre estimated amount is not genuine it may be considered a penalty clause which is not valid

Question 6

What is a global claim?

Answer 6

A claim where a global or composite sum is put forward as the measure of damages where there are two or more separate matters of claim and where it is impossible to provide a breakdown of the sum between those matters

Question 7

What types of claims do we have in construction

Answer 7

Construction delay

Failure to disclose

Personal injury

Drench of contract