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XII. Delay Damages

Liquidated damages for delay are recoverable if (1) the liquidated amount is a reasonable forecast of compensation for the harm caused by the breach, and (2) the harm caused is difficult to assess accurately. Southeast Alaska Const. Co. v. State, 791 P.2d 339, 343 (Alaska 1990). An owner may not recover liquidated damages for delay caused by the owner's insistence that the contractor perform work outside the scope of the original contract. Id. However, where a party to a construction contract exercises its right to terminate the contract and let out the remainder of the contract to another contractor, it may only recover the excess costs involved and not the liquidated damages. Arctic Contractors v. State, 564 P.2d 30, 49-50 (Alaska 1977).