PMD Penalty Calculator

In Milestone A, base value is 40% of the contract value.

1. Penalty base value = Contract Value × (Milestone Weight ÷ 100).
2. Chargeable days = max(0, Delay Days − Grace Days).
3. Daily penalty:
   • Percent type: Daily Penalty = Base Value × (Daily Rate % ÷ 100).
   • Fixed type: Daily Penalty = Fixed Amount per day.
4. Raw penalty = Chargeable Days × Daily Penalty.
5. Cap amount = min(Percent Cap × Base Value, Fixed Cap). If no cap set, cap equals raw penalty.
6. Final penalty = min(Raw Penalty, Cap Amount).
7. Tax/withholding = Final Penalty × (Tax % ÷ 100).
8. Total deduction = Final Penalty + Tax/withholding.
9. Net payable = Contract Value − Total Deduction.

• Enter the contract value and select the currency.
• If penalties apply to a milestone, set the weight.
• Choose Date mode to compute delay automatically.
• Or choose Days mode and type delay days directly.
• Add grace days, then choose percent or fixed rate.
• Provide caps if your clause limits total deductions.
• Press Calculate Penalty to see results above.
• Use CSV or PDF exports for files and approvals.

Purpose of PMD penalty tracking

Project milestone delay penalties protect schedule commitments and maintain cashflow discipline across packages. A consistent method supports weekly progress meetings, contractor notices, and employer decisions when slippage appears. This calculator standardizes deductions using dates or stated delay days, so teams can compare scenarios quickly and document the basis used.

Key inputs that drive deductions

Accurate contract value, milestone weight, and grace days determine the penalty base exposure. Weighting is useful when only a portion of the contract is tied to a milestone, such as foundations, structural frame, or utilities. Percent based daily rates scale with weighted value, while fixed daily rates suit repetitive works with agreed daily charges. Optional tax or withholding fields help align internal accounting with payment deductions.

Delay measurement and chargeable days

Date mode calculates delay as actual minus planned completion, counted in whole days. Days mode accepts delay days when approvals, revised baselines, or external planners provide agreed durations. Chargeable days equal max(0, delay minus grace) to prevent negative values on early completion. For defensible results, verify that planned dates reflect contractual milestones, not informal targets, and record any approved extensions separately.

Caps and commercial risk control

Many contracts limit liquidated damages by a percentage of the relevant value, a fixed ceiling, or both. The calculator applies the smaller cap when both are entered, ensuring the final penalty remains within agreed limits. This supports claim defensibility and audit readiness, especially when multiple milestones accumulate penalties. If no cap is specified, the raw penalty becomes the effective cap, which matches uncapped clauses.

Outputs and documentation for reviews

The summary reports daily penalty, raw penalty, cap amount, final penalty, tax on penalty, total deduction, and net payable. Use exports as attachments to interim payment certificates, commercial dashboards, and dispute review files. Include notes such as clause numbers, correspondence references, and assumptions about working versus calendar days. Consistent documentation reduces rework during approvals and strengthens negotiation positions. It also helps reconcile deductions with ledgers.

FAQs

1) What does PMD represent in this calculator?

PMD stands for project milestone delay used to estimate contractual deductions. It measures how many days a milestone finishes late and converts that delay into a penalty using your selected rate and cap settings.

2) Should I use Date mode or Days mode?

Use Date mode when planned and actual completion dates are known and contractual. Use Days mode when delay days are agreed through progress records, extensions, or a revised baseline, and you want to enter the approved delay directly.

3) How does milestone weight affect results?

When weight is enabled, the penalty base value equals contract value multiplied by the milestone weight percentage. This is helpful when only part of the contract is linked to a milestone, so deductions scale to the relevant commercial portion.

4) What happens if I enter both cap types?

If both a percent cap and a fixed cap are provided, the calculator applies the smaller cap amount. This mirrors common contract drafting where multiple limits may exist and the most restrictive limit controls the maximum deduction.

5) Can the calculator handle early completion?

Yes. If the actual date is earlier than planned, delay days become zero. Chargeable days are also floored at zero after grace days, so the penalty and deductions remain zero for early or on time completion.

6) How are CSV and PDF exports populated?

Exports use the most recent successful calculation stored in your session. After you calculate, the download buttons create a summary file with inputs, results, and notes. Recalculate anytime to refresh exports with updated data.