What might occur if the 'Critical Milestones' are not met?

The imposition of liquidated damages is a significant consequence that may arise if the 'Critical Milestones' in a project are not met. This mechanism is designed to protect the interests of the project owner by ensuring that there are financial consequences for delays or failures to complete key stages of the project on time. Liquidated damages serve as a pre-determined estimate of the loss incurred by the project owner due to delays, thus providing a clear signal to contractors about the importance of adhering to the agreed timeline.

In many contracts, these liquidated damages are specified in advance, giving both parties a mutual understanding of what could happen if critical deadlines are not met. This serves both as a deterrent against delays and as a means of compensating the project owner for potential losses associated with incomplete work or project delays.

The other factors, while they can be consequences of not meeting milestones, do not specifically address the immediate financial repercussions tied to the contract's performance timeline in the same way that liquidated damages do. Changes to project budgets, revisions to the project scope, and increased contractor fees may occur in response to various issues during the project, but they do not directly reflect the established terms for milestone non-compliance as effectively as liquidated damages do.