Bills & payments
Delay Penalty (Liquidated Damages) & Extension of Time Calculator
Most works contracts charge compensation for delay — liquidated damages — when work finishes after the stipulated date, usually as a percentage of the contract value per week or day of delay, subject to a maximum.
Delays caused by the department or by events outside your control (recorded in the hindrance register) can be claimed as extension of time. This calculator subtracts those days, applies the rate and cap from your contract, and helps you draft the EOT request.
Contract
Usually the tendered value; some clauses use only the value of the unfinished work.
Penalty clause
CPWD clause 2: 1.5% per month (≈ 0.5% per week), max 10%. Check yours.
Charged per
Hindrances — delays not your fault
Each period recorded in the hindrance register reduces the chargeable delay. Overlapping periods should be entered once.
None added. Common reasons: site not handed over, drawings or decisions delayed, extra items ordered…
Compensation for delay
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How this is worked out
Chargeable delay = days between the stipulated and actual completion, minus hindrance days. Penalty = value × rate × number of weeks, limited to the cap.
Apply for extension of time as soon as a hindrance occurs and keep the hindrance register signed by the site engineer — most departments reject requests made only at the end of the work.
Frequently asked questions
What are liquidated damages in a construction contract?
A pre-agreed amount the contractor pays for each day or week the work is completed late, set out in the contract's delay clause and normally capped at a percentage of the contract value.
How do I reduce a delay penalty?
Record every hindrance — late drawings, site not handed over, stopped work, extra items — in the hindrance register as it happens, and apply for extension of time. Days granted as extension are not counted as delay.
Figures are for planning. The conditions in your tender document or contract always take precedence.
Let the calculators fill themselves in
With a free Digi Karya account, these tools pull in your own contracts, tenders, bills and documents — and you also get licence and GST expiry reminders, a tender workspace, milestone billing and EMD & bank guarantee tracking.