late fees

Liquidated Damages vs. Late Fees in Construction Contracts

Liquidated damages and late fees both penalize delay, but they're different tools with different enforceability rules. LDs are a negotiated daily amount paid for project delay; late fees are interest-style charges on overdue invoices. Contractors who conflate them — and owners who try to enforce one as the other — create expensive disputes. Here's what each actually is and how they're applied.