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Section XSecondary Options

Clause X7

Delay Damages

Purpose

The Employer may deduct delay damages if the Contractor does not achieve Completion by the Completion Date.

Practical Application

Delay damages are stated in the Contract Data (as a daily rate). They are the Employer's sole remedy for delay.

Common Pitfalls

Delay damages are not a penalty — they must be a genuine pre-estimate of loss. If none stated, the Employer claims actual losses.

⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.