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An owner wishes to construct a five-story hotel. Your firm has been selected to complete the construction management portion of the project. The project includes a liquidated damages clause in the specifications. The liquidated damages clause states that if the project is completed ahead of the projected schedule, then for every day ahead of schedule, your firm will receive a bonus of $2,500. The specifications also state that, for every day behind schedule, you will forfeit (pay) $2,000 to the owner. As the construction manager, what scheduling factors will you consider prior to submitting the final schedule to the owner? In your response, identify two advantages and disadvantages associated with projects that include liquidated damages in the contract.
Please provide references in APA format.
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