This episode delves into the role of damages as a remedy for breaches in construction contracts, as outlined in Julian Bailey’s Construction Law. We explore different types of damages, including compensatory, liquidated, and consequential damages, and discuss how courts assess them in the construction context. The episode covers the principles of foreseeability, causation, and remoteness, examining how these factors affect the calculation and award of damages. We also look at the enforceability of liquidated damages clauses, including when they may be deemed penalties. Through key case studies, we illustrate how damages are quantified and how parties can protect their interests through careful contract drafting. This episode is essential for understanding the financial remedies available in construction disputes.

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