If an employer terminates a contract in its late stages, is it legally permissible for an employer to subtract liquidated damages from the original contractor until the contract has been completed by other contractors?

JCT_Experts · 5 February 2013 15:49

Existing construction contracts do not allow the continuing deduction of liquidated damages after termination. In addition, in the circumstances stipulated in the question liquidated damages would not be due until the date for completion had been reached.

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If an employer terminates a contract in its late stages, is it legally permissible for an employer to subtract liquidated damages from the original contractor until the contract has been completed by other contractors?

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