Work out liquidated damages cap instantly with clear inputs, formula shown and shareable results.
The cap on liquidated damages determines how many weeks of delay are actually protected: at 0.5% per week and a 10% cap, protection runs out after twenty weeks. Beyond that the buyer bears further delay unless the contract provides other remedies.
Cap amount
Cap = Contract value x Cap %
Weeks to cap
Weeks = Cap % / Rate per week %
Damages payable
Payable = min(Rate x Weeks x Contract value, Cap)
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.
5-15% of contract value depending on sector and the buyer's exposure to delay. Suppliers price higher caps into the bid.
The buyer's delay remedy is exhausted. Termination rights and step-in provisions become the only meaningful levers, so they must be drafted carefully.