Delay Damages under FIDIC are primarily a pre-agreed measure to incentivize the Contractor to complete works on time rather than full compensation for all losses suffered. They simplify the process by avoiding the need for the Employer to prove actual losses.
Option A is incorrect; Delay Damages are generally not full compensation.
Option C is incorrect because Delay Damages remove the Employer ' s burden to prove actual loss.
Option B is the correct interpretation.
[References:, , FIDIC Red, Yellow, Silver Books 2017 Editions, Sub-Clause 8.7 – Delay Damages, , FIDIC Contract Manager Study Guide, Module on Delay Damages, , ]
Submit