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LADs definition

What does LADs mean? LADs (liquidated and ascertained damages) are a pre‑agreed sum or rate the contractor must pay the employer for specified breaches—most commonly delay to completion. They are typically expressed as a daily or weekly figure running from the contractual completion date to practical completion, often subject to an overall cap. Variants include performance LADs (for failing to meet output, availability or energy targets) and target internal area LADs (for net internal area shortfalls). LADs are a contractual risk‑pricing tool used widely in UK and Irish construction contracts (for example, JCT, NEC delay damages, FIDIC). The employer need not prove...

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Construction law glossary—L: LADs, latent defects, letters of intent, loss and expense, lump sum contracts, LDEDCA and related terms

Practice notes
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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

LADs

Refer to Liquidated and Ascertained Damages (LADs or LDs).

Late Payment of Commercial Debts (Interest) Act 1999

The Late Payment of Commercial Debts (Interest) Act 1999 grants a statutory right to recover interest on overdue sums. See Practice Notes: Remedies for non-payment under construction contracts and Late Payment of Commercial Debts (Interest) Act 1998.

Latent defects

Flaws inherent in a property’s design or construction that are not evident upon inspection. See Practice Note: Latent defects.

Latent defects insurance

Cover that insures against damage to a property arising from latent defects which emerge during the policy term. Such insurance typically runs for 10 or 12 years from practical completion and is arranged on payment of a single premium...

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Web page updated on 21/05/2026

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