LAD & Delay-Damages Calculator
Model the liquidated ascertained damages on a delayed construction contract. LAD bites on net delay — after extensions of time — so the calculator nets EOT off before it applies the rate.
This is an arithmetical estimate of the contractual LAD, not an entitlement. Under s.75 of the Contracts Act 1950 the sum recoverable is reasonable compensation; following Cubic Electronics v Mars Telecommunications [2018] the stipulated rate is the starting point, and it is for the party challenging it to show it is unreasonable. Net delay after extensions of time — not the raw delay — is what LAD is levied on. Not legal advice.
How LAD is worked out — and what really decides it
The arithmetic is simple: a daily rate multiplied by the days of culpable delay. The daily rate can be a fixed sum per day (common in the PAM forms) or a percentage per annum or per week of the contract sum (as in housing sale-and-purchase agreements). The calculator converts all three to a daily figure.
The law is where it gets interesting. Under s.75 of the Contracts Act 1950 the recoverable amount is reasonable compensation, and after Cubic Electronics v Mars Telecommunications [2018] the stipulated rate is the starting point — it is for the party challenging it to show it is unreasonable. Just as important, LAD is levied only on net delay, so every day of extension of time the contractor secures reduces the exposure. That is why our delay and EOT work is often the most effective answer to an LAD deduction.
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