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Impact of Liquidated Damages Management on Construction Claims in the National Capital Region
Subject area: Management and Commerce · Area of research: Construction Management
Abstract
This study examined the perceived effects and practical influence of liquidated damages (LD) management on construction claims in the National Capital Region. A descriptive mixed-method design with greater qualitative emphasis was used. Of 50 qualified construction professionals invited, 41 completed the survey and 16 submitted written interview responses. Survey data were analyzed using descriptive statistics, while the written responses were coded into seven themes. Findings showed that respondents generally understood LDs, but clause clarity and shared stakeholder understanding remained uneven. Common issues involved unclear completion requirements, disputed delay responsibility, pending Extension of Time requests, and incomplete records. LDs encouraged recovery efforts and closer monitoring, but uncontrolled acceleration could increase cost, defects, rework, and safety exposure. Transparent administration supported accountability, while premature or one-sided enforcement could weaken stakeholder relationships. The study concluded that effective LD management requires clear contract provisions, timely Extension of Time evaluation, complete documentation, proper delay assessment, and fair risk allocation. It recommends a ten-stage practical process from contract drafting and project alignment through LD assessment, negotiation, and project closeout.
Keywords
liquidated damages management, construction claims, extension of time, delay analysis, contract management
How to cite this paper
@article{1722312,
author = {Julian C. Ramirez},
title = {Impact of Liquidated Damages Management on Construction Claims in the National Capital Region},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {10},
number = {2},
pages = {2067-2107},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1722312.pdf},
abstract = {This study examined the perceived effects and practical influence of liquidated damages (LD) management on construction claims in the National Capital Region. A descriptive mixed-method design with greater qualitative emphasis was used. Of 50 qualified construction professionals invited, 41 completed the survey and 16 submitted written interview responses. Survey data were analyzed using descriptive statistics, while the written responses were coded into seven themes. Findings showed that respondents generally understood LDs, but clause clarity and shared stakeholder understanding remained uneven. Common issues involved unclear completion requirements, disputed delay responsibility, pending Extension of Time requests, and incomplete records. LDs encouraged recovery efforts and closer monitoring, but uncontrolled acceleration could increase cost, defects, rework, and safety exposure. Transparent administration supported accountability, while premature or one-sided enforcement could weaken stakeholder relationships. The study concluded that effective LD management requires clear contract provisions, timely Extension of Time evaluation, complete documentation, proper delay assessment, and fair risk allocation. It recommends a ten-stage practical process from contract drafting and project alignment through LD assessment, negotiation, and project closeout.},
keywords = {liquidated damages management, construction claims, extension of time, delay analysis, contract management},
month = {August},
}