Dear Mrs Oliver,
I am writing in response to your request for information (ref FOI 6799).
The relevant Council Service(s) has searched for the requested information and our response is as follows.
What exactly is “refund of liquidated damages deducted for Vale View School Project”?
‘Under the building contract, the employer is entitled to deduct liquidated damages in the amount specified in the contract documents from payments due to the contractor. This sum is expressed as £/per calendar week or pro rata thereto and is deducted where the contractor fails to complete the works by the contract completion date or any extended date that may be awarded under the contract. Vale View had a damages figure of £16,800 per calendar week and at the point of deduction the contract had overrun the completion date by 2 weeks and 2 days. Requests by the contractor for extensions of time to the completion date are allowed under the terms of the contract which are then considered by the Employers Agent. A request for an extension of time was received following the deduction of damages which was subsequently approved by the Employers Agent for the full period of 2 weeks and 2 days. The result of this extension to the original completion date was to reimburse the contractor the amount of damages previously deducted being the sum of £38,400.’
