Delay damages calculator
Delay damages accrue on the net delay: actual delay days less any extension of time, never below zero. Multiply by the daily rate, then compare the result with the cap. The damages applied are the smaller of the two. The rate and the cap are set by your contract.
On this page
How the calculation works
The calculator takes the actual delay in days and subtracts the extension of time granted. A negative result is treated as zero. It then multiplies the net delay by the daily rate. You can enter the rate as AED per day or as a percentage of the contract value per day. The cap can be a percentage of the contract value or an amount in AED. If you enter no cap, none is applied.
Contracts state these figures in their particular conditions, and each contract sets its own. Some state a rate such as 0.1% a day with a cap such as 10% of the contract value. The example uses those figures as illustration only. They are not a rule of FIDIC and not a rule of law.
| Step | Working | Result |
|---|---|---|
| Net delay | 60 days − 41 days of extension | 19 days |
| Daily rate | 4,800,000 × 0.1% | AED 4,800.00 |
| Accrued damages | 4,800 × 19 | AED 91,200.00 |
| Cap | 4,800,000 × 10% | AED 480,000.00 |
| Cap reached | 91,200 is below 480,000 | No |
| Headroom | 480,000 − 91,200 | AED 388,800.00 |
| Damages applied | The smaller of 91,200 and 480,000 | AED 91,200.00 |
When the cap is reached
If the actual delay were 200 days with the same extension, the net delay would be 159 days and the accrued damages 159 × 4,800 = AED 763,200. The cap of AED 480,000 would apply, the calculator would show the cap as reached and the headroom would be zero.
What to check before you deduct
Check your contract for the notice, the rate, the cap and how an extension of time interacts with them. This page does not state what a court or tribunal may do with damages. Check your contract and take legal advice. Work out the extension first with the extension of time calculator.
Where it fits
Deductions appear on the payment certificate. See interim payments, the interim payments guide and the payment certificate entry. Related calculators: payment certificate calculator, retention calculator, advance payment recovery calculator, VAT calculator, variation order calculator, extension of time calculator, bank guarantee cost calculator, price escalation calculator, BOQ line total calculator, subcontractor payable calculator.
Worked example
On a AED 4,800,000 contract the delay damages are 0.1% a day, which is AED 4,800 a day, with a cap of 10%, which is AED 480,000. The project finishes 60 days late and 41 days of extension were granted. The net delay is 19 days, so accrued damages are 19 × 4,800 = AED 91,200. The cap is not reached and the headroom is AED 388,800.
Questions people ask
What are delay damages?
An agreed amount a contract says the contractor pays for each day of delay beyond the completion date, after any extension of time.
Is 0.1% a day a standard rate?
No. Each contract sets its own rate in its particular conditions. The example figures are illustrative only.
Does FIDIC set the rate or the cap?
The calculator makes no such claim. The rate and the cap are filled in by each contract.
Why is the net delay never negative?
If the extension is larger than the actual delay, there is no delay beyond the revised date, so the net delay is zero.
What if I enter no cap?
Then no cap is applied and the cap row says none was entered. A typed cap of 0 caps the damages at zero.
Can the daily rate be an amount in AED?
Yes. Choose AED per day and enter the amount. Choose percentage and the calculator multiplies the contract value by it.
Can a court reduce delay damages?
This page does not say. Check your contract and take legal advice.
Does the calculator include VAT?
No. It works on the amounts you enter. Ask your tax adviser how a deduction is treated for VAT.
Where does the extension of time come from?
From your contract process. The extension of time calculator shows the arithmetic for the days you enter.
Is the damages cap the same as a retention cap?
No. The damages cap limits total delay damages. A retention cap limits the retention held.