Liquidated Damages
As Gaeilge: Damáistí Réamhmheasta
Also known as: LDs, Liquidated and Ascertained Damages, LADs
Last reviewed April 2026
A pre-agreed daily or weekly sum the contractor pays for late completion: enforceable without proof of actual loss.
Liquidated damages (LDs) are a fixed sum specified in the contract that the supplier must pay for each day or week of delay beyond the agreed completion date. On Irish public works contracts (PW-CF series), LDs are set in the Schedule of Contract Particulars and apply automatically, the contracting authority does not need to prove actual loss. To be enforceable, LDs must be a genuine pre-estimate of likely loss; a punitive figure is unenforceable as a penalty. LDs are typically capped (often at 10% of the contract sum). Read the Special Conditions carefully: LD rates on Irish public contracts can be material to bid pricing.
Sources and legal basis
Primary legislation and official guidance. Always confirm the current text on the source before relying on it.
Related terms
PW-CF (Public Works Contract Form)
The standard Irish government construction contracts (PW-CF1–CF5) under the Capital Works Management Framework: fixed-price, non-negotiable.
Performance Bond
A guarantee from a surety (bank or insurer) that the contractor will complete the works, typically 12.5% of the contract sum on Irish public works.
Contracting Authority
A public body that buys goods, services, or works with public funds: departments, councils, the HSE, ETBs, etc.
Economic Operator
The EU procurement term for any supplier, contractor or service provider (an individual, firm, or consortium) that bids for or performs a public contract.