Work out penalty clause cost instantly with clear inputs, formula shown and shareable results.
Delay penalties accrue at a stated rate per week against contract value and stop at a contractual cap. Knowing exactly when the cap bites matters commercially: beyond it the contractor has no financial incentive to accelerate, so the remedy must shift to termination or step-in rights.
Uncapped penalty
Penalty = Contract value x Rate per week x Weeks late
Payable
Payable = min(Uncapped penalty, Contract value x Cap %)
Indicative estimate. Enforceability, extension-of-time entitlement and interaction with general damages depend on the contract and governing law. Not legal advice.
In many common-law jurisdictions a clause that is a genuine pre-estimate of loss (liquidated damages) is enforceable, while a punitive penalty may not be. Drafting matters.
Yes. Granted extensions move the contractual completion date, so excusable delay weeks are removed before the calculation.