Delay Cost Calculator
Calculate your total delay exposure including liquidated damages, preliminary costs, and overhead. See the impact of Extension of Time claims
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Frequently Asked Questions
What are liquidated damages (LDs) in Saudi construction contracts?
Liquidated damages (LDs) are pre-agreed compensation amounts specified in construction contracts that the contractor must pay to the employer for each day of delay beyond the contract completion date. LDs are intended to be a genuine pre-estimate of the employer's losses due to delay, not a penalty. Saudi courts typically enforce LDs if they're reasonable and not excessive.
What is the typical LD cap in Saudi construction contracts?
LD caps in Saudi construction contracts typically range from 5% to 15% of the contract value, with 10% being most common. Government projects often have lower caps (5-10%) while private sector projects may allow higher caps (10-15%). The cap ensures LDs don't become punitive and exceed actual damages.
What is an Extension of Time (EOT) and how does it reduce delay exposure?
An Extension of Time (EOT) is a formal adjustment to the contract completion date granted by the employer for qualifying delays (e.g., force majeure, employer-caused delays, exceptional circumstances). EOTs reduce LD exposure because they extend the completion date, meaning fewer days incur LDs. Successful EOT claims can significantly reduce or eliminate delay costs.
What are preliminary costs and why are they relevant to delay calculations?
Preliminary costs (prelims) are ongoing site running costs incurred regardless of work progress, including site staff salaries, security, utilities, facilities, equipment standby, and site administration. During delays, these costs continue but aren't recovered through progress payments, creating additional financial exposure beyond LDs.
How should I handle concurrent delay in Saudi construction projects?
Concurrent delay occurs when multiple delay events happen simultaneously (e.g., contractor delay + employer delay). Under Saudi construction law and FIDIC principles, concurrent delay typically results in EOT for the contractor but no LDs, as the employer's concurrent event prevents them from claiming full damages. Proper documentation and delay analysis are critical for concurrent delay claims.
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