Delay can cause incalculable damage...

Delay can cause incalculable damages to an proprietor on a construction frame Such damages, however, may be remarkably difficult to quantify with reasonable accuracy. Thus, in order to help avoid the uncertainty and cost of long evidentiary battles to establish (or refute) the owner's actual damages, parties to a construction contract may agree in advance to liquidate those damages. A "liquidated damages" clause is a negotiated clause to establish in advance a reasonable estimate of the damages that would be incurred by dint of reason of a breach of contract or unexcused delays.