86 LABOR AND CONTRACTS 



EXTRAS 



These, as are well known, give rise to dissatisfaction and 

 dispute. A contract should be so framed that the approved 

 bill for extras will be as small as possible. Considerable 

 care and foresight are required on the part of the engineer 

 in order to provide in the contract for contingencies which 

 would otherwise be overlooked. The adjudication of the 

 bill for extras is difficult and disagreeable. 



PENALTY CLAUSES 



If the work does not progress at the proper rate, it is 

 the duty of the engineer to give notice to that effect. 



The " penalty clause " in most contracts imposes a 

 certain charge per day for non-completion of the work on 

 contract time. Provision is made in the specifications that 

 the penalty be deducted from the moneys due the contractor 

 on the final estimate. These clauses are apt to be very 

 faulty from the legal point of view, notwithstanding the 

 fact that, although written by the engineer, they are 

 passed on by the counsel (see page 14). Contractors, as 

 a rule, who know the law in such matters better than 

 engineers, pay but little attention to these " penalty 

 clauses," knowing that they are nearly void. In order 

 to overcome the legal difficulty involved in a penalty, the 

 clause sometimes states that the charge made for non- 

 completion of the work is not to be construed as a penalty 

 but as liquidated damages. This clause will also not be 

 upheld in court unless it can be shown that the damages 

 claimed are those actually sustained. Courts of law in 

 general are opposed to hard-and-fast agreements made in 

 advance to cover damages which may be sustained for 

 non-completion of the work on time. If, however, these 



