Terminology not defined in JBCC® agreements – ‘damages’ is an amount of money that puts an injured party into the same position had no loss been sustained or expense incurred (referred to as ‘liquidated damages’ in English law) …

  1. The employer may be entitled to damages where the contractor has repudiated an agreement;
  2. Damages do not apply between employer and contractor (other than on repudiation) – the employer may recover stated penalties where the works has been delayed
  3. The contractor may be entitled to damages where (a) subcontractor(s) have caused delays and /or other expense;
  4. subcontractor may be entitled to damages where the contractor has caused delays and /or other expense to the subcontractor;
  5. Damages must be proven

Note: A penalty is a fixed amount (calculated based on the anticipated expense or loss) that can not be increased, but can reduced or not applied by the employer provided the amount is stated in the tender documents – penalties can not be introduced into an existing agreement