PMC💰 Contract & BillingLiquidated Damages (LD) Calculation

Liquidated Damages (LD) Calculation

form
PMC-BIL-FRM-005·v1.0-beta·⚠ Beta — review before use

This form is used to calculate the Liquidated Damages (LD) applicable to the contractor for delays in project completion. It systematically records the delay period and computes the penalty amount as per the contract agreement.

ReferencesFIDIC (1999 Red Book) Sub-Clause 8.8: Delay DamagesIndian Contract Act, 1872 - Section 74CPWD General Conditions of Contract (GCC) - Clause 2: Compensation for DelayState PWD Manuals on contract management and penalties
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📍 When to use this template
  • When the contractor fails to achieve a milestone or complete the project by the stipulated date, after considering all approved Extensions of Time (EOTs).
  • Prepared by the Engineer/PMC team before certifying the final bill or when invoking the LD clause during the project.
  • Typically filled by the Contracts Manager or Project Manager and approved by the Client/Employer's representative.
Sections & fields
Preview of the template structure. Download Excel to fill on site.
1Header / Project Information6 fields
Project Name
_____________
Contract / Package No.
_____________
Document Number
_____________
Date of Calculation
_____________
Prepared By (PMC/Engineer)
_____________
Approved By (Client/Employer)
_____________
2Contractual Dates & Milestones6 fields
Original Contract Start Date
_____________
Original Contract Completion Date
_____________
Stipulated Period of Completion (in days/months)
_____________
Approved Extension of Time (EOT) in Days
_____________
Revised Contract Completion Date (Original + EOT)
_____________
Reference to EOT Approval Letters
_____________
3Actual Completion & Delay Calculation6 fields
Actual Date of Substantial Completion (as per Taking-Over Certificate)
_____________
Total Delay in Days (Actual Completion - Revised Completion)
_____________
Delay Attributable to Employer/Force Majeure (in Days)
_____________
Delay Attributable to Contractor (Net Delay in Days)
_____________
Reference to Delay Analysis Report
_____________
Remarks on Delay Apportionment
_____________
4Contractual LD Clause Details5 fields
Relevant Contract Clause No.
_____________
LD Rate (e.g., % of Contract Value per week/day of delay)
_____________
Maximum LD Cap (% of Total Contract Value)
_____________
Total Original Contract Value (CV)
_____________
Value of Work for LD Calculation (if different from total CV)
_____________
5LD Amount Calculation7 fields
Net Delay Period for LD (in Days/Weeks)
_____________
Applicable LD Rate
_____________
Calculated LD Amount (Net Delay * Rate * Contract Value)
_____________
Maximum Permissible LD Amount (as per Cap)
_____________
Final LD Amount to be Levied (Lesser of Calculated vs. Cap)
_____________
LD Amount Already Deducted in RA Bills (if any)
_____________
Balance LD to be Recovered/Deducted in Final Bill
_____________
6Approvals & Records5 fields
Signature (Contracts Manager)
_____________
Signature (Project Director - PMC)
_____________
Signature (Client Representative)
_____________
Date of Final Approval
_____________
Reference to Final Bill where deducted
_____________
💡 Sample filled excerpt
Net Delay Period for LD: 45 Days (approx. 6.4 weeks) | Applicable LD Rate: 0.5% per week | Calculated LD Amount: 6.4 weeks * 0.5% * ₹5,00,00,000 = ₹16,00,000 | Maximum Permissible LD (10% Cap): ₹50,00,000 | Final LD Amount to be Levied: ₹16,00,000
⚖ Compliance notes
  • Fulfills the procedural requirement for levying damages as per the Indian Contract Act, 1872, Section 74.
  • Provides a clear basis for deductions in the Final Bill, as per FIDIC Sub-Clause 8.8 [Delay Damages] or equivalent CPWD/State PWD contract clauses.
  • Essential documentation for contract closure and to defend against potential arbitration claims regarding delay penalties.
  • Creates an auditable record for client/internal finance teams to verify the penalty calculation against contract terms.