Contract Delay Penalty
Calculator

Inputs

Penalty per day
250

Results

Penalty per day
250
Penalty before the cap
11,250
Penalty cap amount
25,000
Penalty payable
11,250
Contract value after the penalty
238,750

Legal and admin results

Penalty per day250
Penalty before the cap11,250
Penalty cap amount25,000
Penalty payable11,250
Contract value after the penalty238,750

formula-map diagram

Penalty per day
250
Penalty before the cap
11,250
Penalty cap amount
25,000
Penalty payable
11,250
Contract value after the penalty
238,750

Legal and admin relationship

Formula

Penalty = min(value × daily% × days late, value × cap%)

= 250

Note

This is NOT legal advice and NOT a statement of any law. It is generic arithmetic: it applies the displayed formula to the figures you entered, and every rate, fraction, factor, cap and threshold shown is a value YOU supply, not a statutory or court-approved figure. No jurisdiction's rule is built in. Real entitlements, fees, interest, support amounts and deadlines depend entirely on the jurisdiction, the wording of the contract, the day-count and rounding conventions the court applies, and the facts of the case. Use these figures only as a rough arithmetic check and consult a qualified lawyer in the relevant jurisdiction before relying on any number.

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Frequently asked questions

How is a contract delay penalty (liquidated damages) calculated?+

The calculator multiplies the daily (or other period) penalty rate specified in the contract by the number of days the work is late beyond the deadline. This assumes the contract specifies a per-day rate rather than a lump-sum penalty.

Is there a maximum cap on delay penalties in most contracts?+

Many contracts include a cap, often expressed as a percentage of total contract value, to limit the penalty even if delays are extreme. Check your specific contract for a cap clause, since without one the penalty could otherwise grow without limit under this calculation.

What's the difference between a penalty clause and liquidated damages?+

Liquidated damages are meant to be a genuine pre-estimate of the loss caused by delay and are generally enforceable, while a pure 'penalty' intended to punish rather than compensate can be unenforceable in many jurisdictions. This is general information, not legal advice on enforceability.

Do weekends and holidays count as delay days?+

This depends entirely on how the contract defines the delay period — calendar days include weekends and holidays, while business days exclude them, which can produce meaningfully different totals. Confirm which definition your contract uses before entering the number of delay days.

What happens if the delay was caused by the client, not the contractor?+

Most contracts exclude delay penalties for causes outside the contractor's control (force majeure, client-caused delays, or approved extensions), so the penalty should only apply to days of delay actually attributable to the contractor under the contract's terms.