Penalty clauses for schedule slippage are sometimes referred to as:
A) liquidated damages.
B) punitive damages.
C) temporal assessments.
D) late fees.

Question

Quizplus · Accepted Answer

Penalty clauses for schedule slippage are known as liquidated damages because they specify a predetermined amount of compensation that must be paid by the contractor or supplier in the event of a breach of the contract. This compensation is meant to cover the damages incurred by the project owner due to the delay or slippage in the schedule. The other options are not appropriate because punitive damages are generally only awarded in cases of willful misconduct, temporal assessments is not a common term, and late fees are typically associated with payments, not schedule slippage.

Penalty Clauses for Schedule Slippage Are Sometimes Referred to As