Join Black Spectacles and architect Garric Baker for a deep dive into the Construction & Evaluation division with a mock practice exam on this episode of ARE Live!
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Hi! I have a question about WHEN the owner could pursue the liquidated damages for that particular project because they had the disagreement?
Do we as the architect have to continue to certify and the owner continue to pay the contractor for the work until the very end of the project? At what point can they deduct or get the cost associated for the liquidated damages considering this goes against the contract obligations.
@jharel.monier great questions! I’ll answer both here with the second one first -
The project is nearing substantial completion, so this will likely be the second to last, if not the last, certificate for payment - so luckily we don’t have to worry about it! However, so long as the work is being completed to meet the design intent, we would need to have a very good reason to deny certifying the pay request. (A201-2017: §9.5 Decisions to Withhold Certification). So in this instance, we can continue to pay - OR - need to have a justifiable reason to withhold the certificate.
For collecting liquidated damages, it’s difficult to begin collecting any type of damages before the project has concluded - otherwise, the final number of days past the contract can continue to change, or in some instances are negotiated to reduce the burden on the contractor. Collection would likely happen at the very end with the assistance of an attorney because at that point it truly becomes a breach of contract.