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|Title: ||Assessment and enforcement of liquidated damages in construction contracts in Ghana|
|Authors: ||Tuuli, M.M.|
Baiden, Bernard K.
|Keywords: ||s Damages,|
|Issue Date: ||17-Jul-2007|
|Publisher: ||Emerald Group Publishing Limited|
|Citation: ||Structural Survey Vol. 25 No. 3/4, 2007 pp. 204-219 q Emerald Group Publishing Limited 0263-080X DOI 10.1108/02630800710772809|
|Abstract: ||Purpose – The enforcement of liquidated and ascertained damages (LADs) can be problematic when
the amounts are poorly assessed and there are lapses in the administration of contracts. This paper
seeks to investigate the relevance of LAD clauses in construction contracts in Ghana, as well as the
methods employed in their assessment and enforcement.
Design/methodology/approach – A parallel survey method was adopted. Three sets of similar
questionnaires (slightly modified) were administered to professionals in client, consultant and
contractor organisations in contract administration roles, to explore their experiences in the
assessment and enforcement of LADs.
Findings – LADs are not serving their purpose in construction contracts in Ghana. Clients have
created situations that render LADs unenforceable. LAD amounts are also not genuine pre-estimates
of expected loss to be incurred, as assumptions and guesses rather than genuine calculations on a
case-by-case basis are adopted in their assessment.
Originality/value – This research indicates that the enforcement of LADs can be enhanced if clients
become more diligent in their contractual, mostly financial, obligations. Since a purposive sampling
procedure was adopted, the findings and conclusions of this research are only tentative, but
nevertheless raise serious issues regarding contract administration practices in Ghana.|
|Description: ||An article published by Emerald Group Publishing Limited and also available at DOI 10.1108/02630800710772809|
|Appears in Collections:||College of Arts and Social Sciences|
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