Liquidated damages are a pre-estimate of the 'loss' a client/owner is likely to suffer if the practical completion of a building project is delayed beyond the date for practical completion (as legitimately extended under the terms of the contract). Liquidated damages are not permitted by the law to be a penalty, but are to be a reasonable estimate of the likely actual cost the client/owner will incur if completion of the project is delayed. For example, if the client/owner is renting accommodation while their house is being built, the liquidated damages might be equal to the rent they are paying. To complete the schedule item at the time of signing the architect needs to take advice from their client/owner, after explaining that this must reflect reasonable estimates of the client/owner's costs at the time practical completion is anticipated.