• Korean Journal of Construction Engineering and Management
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• v.8 no.1 s.35
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• pp.150-158
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• 2007

The delay of construction is one of the most frequent and complicated elements of the claim. And the liquidated damages cause many disputes during the judgement. The liquidated damages should be a compensation for owner's substantial loss, but actually be applied as a damage for breach of contract. These damages are different from owner's loss and give constructors a excessive burden. So we need a more reasonable system than a lump application system. In this study, we make a Improvement System, that based on owner's substantial loss, and suggest the new liquidated damages calculation method.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.458-461
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• 2006

With the opening in construction market, more diversified and internationalized construction culture is imported, but the level of our construction culture and policy is still not met the international standards. For example, there is a difference in the liquidated damages at delay due to the reason of builder imputation during the public construction project comparing the international standards like damages. It may lead to the potential claim. In this study, via comparing and analysis on the relevant international standards and extension expense for terms of work, actual compensation is selected, and improvement of liquidated damages like damages is presented.

• Korean Journal of Construction Engineering and Management
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• v.24 no.1
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• pp.12-20
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• 2023

To calculate the amount of owner-caused and contractor-caused delays based on a simplified delay analysis, which has been customarily used in Korea, has a limitation in reflecting the impact of the concurrent delay and the acceleration work. It also resulted in the apportionment of liquidated damages by applying the ratio of the number of delays between the owner and the contractor. This study analyzes that the conventional method does not meet the international standards. In order to improve the problem of construction delay analysis and the apportionment of liquidated damages based on it, owner delays, contractor delays, concurrent delays, and the impact of acceleration should be analyzed together. This study suggests that in the apportionment of liquidated damages, the extension of time should be extended by the sum of concurrent delays and the owner-caused delays, and liquidated damages should be imposed on delays incurred after the extension of time. It can be seen that it conforms to the international standards. The results of this study are expected to contribute to improving the problems of delay analysis and liquidated damages calculation, which have been conventionally accepted.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2002.11a
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• pp.111-116
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• 2002

The delay of the completion of the construction project occurs frequently because the origin schedule is affected by numerous factors that contribute to the overall delay in completing the project. But in our country. the dealing with a claim is not sufficient yet by reasons of fairl relation between owner and constructor, cognitive shortage in claim, and such. especially they have make a wrong application of baseless the rule. In this study. we make a rational model ; that includes calculating of dispute costs, and suggest the solution and the prevention for claim by considerating the law followed liquidated damages.

• International conference on construction engineering and project management
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• 2015.10a
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• pp.718-719
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• 2015

As a recent global trend, the majority of plant projects are delivered through EPC or EPC-turnkey contracts, where a contractor's liability is more complicated because of the mega size scale and financing method. Previous researches have been lacking a practical usability for project members for liabilities of contracts. Those were focused on solving the claims or schedule calculation issues only. The objective of the present study was to develop a validation process for LDs (liquidated damages) in contractor's liabilities with various case studies and expert judgments. As summarized in this paper, the processes and tools were developed with project life cycle process. The project preparation phase includes 3 step check lists to determine the Go or No-go for projects. In progress phase, contractors should focus on the response strategies for claims with liabilities. The study concludes that those developed processes and tools will help to manage risk of LDs for the contractors in the overseas projects.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.13
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• pp.235-253
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• 2000

As to the sphere of application, Article 78 CISG undoubtedly applies to interest on the purchase price. Furthermore, the provision also applies to "any other sum that is in arrears". This language has been interpreted to encompass expenses that one party had on behalf of the other as well as reimbursements when the purchase price is reduced according to Article 50 CISG. However, it is questionable whether this language also extends to claims for damages. Legal scholars seem to agree that one has a right to interest on damage claims under Article 78 if the amount in question has been liquidated vis-a-vis the other party. Whether this right to interest also applies to unliquidated sums, is controversial, however. In this study, as a result of taking into account the puspose of Article 78, we could find the fact that regardless of whether the exact amount of damages has been specified yet, the breaching party still owes compensation to the other party from the time of the breach and, accordingly, the non-breaching party should be entitled to interest payments on the loss from that time. Consequently, Article 78 applies not only to liquidated but also to unliquidated damages.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.17
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• pp.71-91
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• 2002

The purpose of this paper is to examine the viewpoints of the different legal systems for the validity of LD Clause and the possibility of gap-filling function of UNIDROIT Principles in International Sales Contract. The results of comparative study between common law system and civil law system, and between CISG and UNCDROIT Principles is as follows: First, common law system distinguishes LD Clause and Penalty Clause, but civil law system including Korean law does not strictly distinguish the difference between them, provided that the liquidated damages are not grossly excessive. Second, CISG does not concerned with the validity of LD Clause but entrust this matter to the law applicable by virtue of the rules of private international law; conversely the Principles follow similar position of civil law system. The possibility of gap-filling of the Principles is more positive in the case of arbitration than in the case of litigation. On the basis of above study, I also checked the LD Clauses of ICC Model International Sales and the Model Contracts of Korean Commercial Arbitration Board. The LD Clauses of there two Model Contract seem very appropriate and reasonable for the reference in practical application. The appropriate, not excessive, LD Clause will contribute not only to eliminate the burden of proof for the actual damages, but also to enforce both parties to perform their obligations in their contracts. Therefore, When we make contract, we should keep in our mind to insert the reasonable and appropriate LD Clause in the sales contract. If not, so to speak, litigated damages are grossly excessive, the Clause may be invalid in some legal system.

• Journal of the Korea Institute of Information and Communication Engineering
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• v.17 no.4
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• pp.1034-1041
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• 2013

Liquidated Damages is damages that have to be paid when a debtor could usually work off that which they owe, but didn't due to causes imputable. However, currently the Defense Acquisition Program Administration contracts with domestic businesses in case of delay of implementation occurs; they have to pay damages of deferment unlimitedly as a penalty concept, not in compensation about delay. With this in account, conflicts between the two continuesly happen. DAPA wastes administration and counter business costs increasingly burdening their budget. Defense and military procurement need to revise the compensation of deferment system. This paper analyzes the problems about that system, which is applied to domestic business, and also compares it with that of industrialized countries and suggests measures of set price caps in compensation of the deferment system.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.77
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• pp.23-42
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• 2018

This study compares the SGA and CISG to find out the difference of the criteria for calculating damages. and it intends to give some important points in trade practice. The damages is intended to compensate the victim for the breach of contract but there are differences between SGA and CISG as follow. First, the SGA and CISG have the same purpose of claiming damages. Both laws and regulations are subject to a full indemnification to compensate for the breach of the contract by the amount equivalent to the loss suffered by the victim. Second, in the general principle related to the calculation of damages, both law enforcement officials are required to be able to predict damages caused by breach of contract. In the case of SGA, however, a foreseeability test or remoteness of damages is required for the relationship between the contract violation and the loss. In other words, it can be said that the causal relation between the contract violation and the damage is strictly applied rather than the CISG. Finally, both laws and regulations of SGA and CISG have a big difference in criteria for calculating damages. In the CISG, after the contract is canceled, it is classified according to the existence of the alternative transaction and the damage amount is calculated based on the contract price. On the other hand, the SGA estimates the loss based on the market price at the delivery of the goods, reflecting the change in the market price instead of the contract price of the goods.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.58
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• pp.3-33
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• 2013

The purpose of this paper is to examine the problems in exercising buyer's right to claim damages for the breach of contract by the seller in international sales contract and to suggest reasonable counter-measures. The main contents are as follows: First, this author analyzed the principles of the seller's liability for damages in detail and examined the methods for the calculation of damages on the basis of Arts.74~77. As these articles are found to be insufficient in practical application, this author further examined the UNIDROIT Principles(2004) to confirm whether these Principles can fill the gaps of CISG or not, which turned out their gap-filling functions. Second, this author tried to find any expected problems when the buyer resorts to the right to claim damages in case of the seller's breach of contract including the estimation of damages, the burden of proof, causation, the proof of appropriateness for avoidance, the proof of buyer's obligation to mitigate the loss and so on. The reason is that these problems may cause a lot of difficulties in real business. As result, many buyers have given up their reasonable rights to claim damages so far. Finally, from the buyer's perspective, this author would like to suggest a liquidated damage clause(LD Clause) which gives the buyer to received a specified sum in case of seller's non-performance and/or a demand guarantee(or standby L/C) which guarantees buyer to secure unconditional payment independent of the underlying contract. For these purposes, the buyer should try to insert the LD Clause and/or Guarantee Clause in the contract when the buyer and the seller negotiate the sales contract. Also there are a lot of considerations and limitations in using the LD Clause and the Guarantee Clause in their real business, mainly dependent up bargain power between the seller and the buyer, for which this author promise to examine in detail in the future.