LIQUIDATED DAMAGES is famously called 'LD' in the construction industry. Most of people who work in construction firms know what does it mean. It is put as a clause inside contract agreement, in order to settle if contractor failed to deliver project on time. Client is entitled to claim based on LD clause as a form of penalty to its contractor who breach contract. Hence, LD clause is considered important one among others. By putting this clause, contractor aware of on time delivery as they scare of being charged at the end. And it is usually limited not exceeding 15% of contract sum. As it's made for good purpose, it is fair to incorporate in contract for both parties. As both parties are professionals, they should take fully responsibilities while they enjoy profit bear from project.
One fine day, my wife who is working as QS shared me a joke that she found in her office. There is a local man who is in-charge of her department. One particular day, accountant lady wonder what does LD means and asked aforesaid man for answer. My wife quietly listen how he'll answer and she was amazed by learning how he answered to accountant. What he answered was....
LD means "Late Delivery" lol. Accountant satisfied with answer and went back her room by saying 'Oh Yes, I know". My wife secretly laughed and can't wait to share me when she get back home. We realize that this is basis requirement to become a QS or contract related department staffs. But really we don't know why this department head don't know it. He seem no kidding accountant by his answer. But he still survive in this industry. Perhaps, there is mismanagement within my wife company administration.
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