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This is known as the 'cascading effect', and it was considered in a 2008 case between Liberty Mercian Ltd and Dean and Dyball construction.

Early use is where an employer is allowed, with the consent of the contractor, to use or occupy part of the works before that part is deemed to be completed.

In fact, if the clause is valid and applicable, employers will be entitled to the specified LDs even if they have sustained no actual loss.

From a contractor's perspective, LDs effectively act as a limit on its liability for delay.

Key dates and sectional completion All commercial projects, particularly large ones, may reach practical completion (PC) in stages.