When a contract runs late, the liquidated-damages clause turns delay into a defined, daily cost. This calculator multiplies the contractual rate by the delay period and applies any cap so contractors, project managers, and procurement teams can quantify exposure without re-reading the clause every time.
How it works
Damages accrue per unit of delay up to the contractual ceiling:
delay days = completion date − contractual date (calendar days)
daily rate = rate, or weekly rate / 7
accrued LDs = daily rate × delay days
total LDs = min(accrued LDs, cap) (if a cap is set)The cap is the critical limiter: once accrued damages reach the contractual maximum, further delay adds no liability, which changes the negotiating position materially.
Example and tips
A contract with 5,000 per day LDs and a 200,000 cap that finishes 30 days late accrues 150,000, below the cap, so the full 150,000 is due. At 50 days late it would accrue 250,000 but is capped at 200,000. Always adjust the start date for any extensions of time first: counting from the original date when an extension was granted overstates the claim. Liquidated damages must be a genuine pre-estimate of loss to be enforceable, so take legal advice where the figure looks punitive.