FlexiQuiz - General Practice (AIA Contracts)

For full functionality of this site it is necessary to enable JavaScript.

Submitting ...

1. A construction company has entered into a contract with a local school district to build a new school. The contract, following AIA Document A101-2017, specifies a 12-month period for completion, with the clause that if the project is not substantially completed within this timeframe, the construction company will owe the school district liquidated damages of $1,000 per day. The project unfortunately runs into delays due to the construction company's management issues, and the completion extends two months beyond the scheduled timeframe. How would the liquidated damages clause apply in this situation?

The contractor will owe the school district $1,000 for each day of delay, starting from the first day after the 12-month period ends, until the project reaches Substantial Completion.

The construction company is exempt from paying liquidated damages if they complete the project within two months after the scheduled completion date.

The school district can only claim liquidated damages if they prove the exact amount of loss incurred due to the delay.

Liquidated damages will not apply since the delay was due to management issues and not directly related to construction activities.

Save

Answered 0 of 20 (0%)

Bookmarks: