If a contract is using Sectional Completion (Clause X5) but not Delay Damages (Clause X7), how is the loss suffered by the Client as a consequence of the Sectional Completion Date being missed assessed and how is this recovered?
Also, where is this remedy stated.
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There is a gap in the Contract in these circumstances and you would need to insert a special Clause Z to allow for recovery of unliquidated damages.
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@turleya, Depending on the circumstances, properly assessed and implemented Compensation Event(s) may address part or all of the “loss suffered by the Client”.
Delay Damages in a contract is a mechanism to avoid the cost and time incurred in suing for damages. If there is no LADs mechanism in the contract then it is still an option to litigate, although this is rarely economically viable.
Other forms of NDR may prove useful to settle the issue, without the need to litigate.