What document terminates any further assessment of liquidated damages?

The document that terminates any further assessment of liquidated damages is the Certificate of Substantial Completion. This certificate is a formal acknowledgment by the project owner or their representative that the project has reached a stage where it can be used for its intended purpose, even if some minor work remains.

The significance of this document lies in its legal implication; once it is issued, it effectively marks the completion of the construction phase in relation to the contractual obligations associated with liquidated damages. Typically, liquidated damages are assessed when the contractor fails to complete the work by the stipulated deadline. However, once the Certificate of Substantial Completion is issued, the owner acknowledges that the project is fit for use, thus preventing any further imposition of liquidated damages that may have been accruing due to delays.

This is an essential concept in construction contracts, as it clarifies the transition from ongoing work to substantial completion, impacting the contractor's responsibilities and the owner’s perceptions regarding project timeframe and penalties.