In construction contracts, penalty clauses are technically called "liquidated damages clauses;" if they are labeled "penalty" clauses, there is a long line of cases that says they are not enforceable.

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This statement is correct. Penalty clauses in construction contracts are technically called "liquidated damages clauses," and if they are labeled as "penalty" clauses, they may not be enforceable.

In Construction Contracts, Penalty Clauses Are Technically Called "Liquidated Damages