Help me commenting and agree with this student post: The Government wants to include such a liquidated damages provision in the construction contract in order to protect itself in case the Contractor does not complete their work by the date indicated in the contract. It also provides a way for the Government to regain costs associated with the delay. The risks to Construction, Inc. from entering into a contract that includes such a liquidated damages provision are financial penalties if the work is not completed by the date specified in the contract. The contract could face the risk of termination as well, which would be an additional loss for Construction, Inc. Additionally, Construction, Inc, may have to increase their resources if they do not meet the deadline, which would increase the costs for Construction, Inc. The benefits to Construction, Inc. from entering into a contract that includes such a liquidated damages provision are that Construction, Inc. is protected from claims of a breach of contract from the delay of the completion of the work. The subcontractors are held accountable for their time and work and Construction Inc., would know what they have to pay in the event of the delay. Without this provision, the Government may sue for a breach of contract and ask for additional damages