---
title: Liquidated Damages (LD) Calculator for GeM Contracts · TrackTender
description: Free LD calculator for GeM and government supply contracts: 0.5% of the delayed quantity's value per week or part week, capped at 5% of the contract, or 10% for inordinate delay.
canonical: https://tracktender.com/tools/ld-calculator/
source: https://tracktender.com/tools/ld-calculator/
---

# Liquidated damages calculator

> Free LD calculator for GeM and government supply contracts: 0.5% of the delayed quantity's value per week or part week, capped at 5% of the contract, or 10% for inordinate delay.

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- Liquidated damages calculator

# Liquidated damages calculator

Work out the LD a GeM buyer can deduct for late delivery: 0.5% of the late goods' value per week or part week, up to the 5% or 10% cap on the whole contract.

 Contract value of the delayed quantity Only the goods that arrived late. Use the GST-inclusive value. Total contract value ₹10 lakh. The cap is worked out on this. Delivery due Actually delivered
 Delivery period in the contract (days) Used for the inordinate-delay test (more than 25% of this period). Leave blank to use the 5% cap. LD the buyer can deduct **₹6,000** 17 days late, charged as 3 weeks
 Days late17
 Weeks charged (part week = 1)3
 LD at 0.5% a week₹6,000
 Cap10% = ₹1,00,000
 Inordinate after15 days late

**Based on:** GeM GTC v1.29 (25 Mar 2026), clause 15; DoE Manual for Procurement of Goods 2024, paras 9.3.3 to 9.3.10. The tender document always decides.

## How the GeM LD rule works

Liquidated damages (LD) are what a government buyer deducts when you deliver late. Clause 15 of the GeM General Terms and Conditions sets the rate at 0.5% of the contract value of the delayed quantity for each week or part of a week, until actual delivery. The total can't go past 5% of the total contract value, or 10% when the delay is inordinate.

LD runs on the delayed quantity only. If 60% of the order arrived on time, only the late 40% counts. Part of a week is charged as a full week, so eight days late is two weeks. The cap, though, is worked out on the whole contract.

## What counts as inordinate delay

An inexcusable delay of more than a quarter of the completion period is inordinate. On a 60-day order that's anything past 15 days, and on a 30-day order anything past 7.5 days. Enter the delivery period above and the calculator runs this test for you. Short orders cross it quickly.

## Delays you shouldn't pay for

Where the delay comes from force majeure, or from the buyer or consignee (a late sample approval, say), the buyer can re-fix the delivery period without LD. Force majeure only helps if you give documented notice within 10 days of the event. Ask for any extension in writing before the delivery date passes. The Manual for Procurement of Goods applies the rate to the delivered price, GST and freight included, so enter the GST-inclusive value of the late goods.

## Checking a deduction

On GeM, LD comes out of your payment after the CRAC. Before you accept a deduction, check four things: that it was charged on the delayed quantity and not the whole order, that the weeks run from the original or re-fixed delivery date, that 10% wasn't used without a delay past the 25% mark, and whether the bid's ATC changed the rate or cap.

## Read the full rule

- [Liquidated damages in government contracts: rate and cap](/blog/liquidated-damages-government-contracts/)

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 FAQ

## Common questions

 How are liquidated damages calculated on GeM?

Under clause 15 of the GeM General Terms and Conditions, the buyer can recover 0.5% of the contract value of the delayed quantity for every week or part of a week of delay, until actual delivery. A delay of 3 weeks and 2 days counts as 4 weeks. The total cannot exceed 5% of the total contract value, or 10% for inordinate delay.

What is the maximum LD in a government contract?

Usually 5% of the total contract value, rising to 10% where the delay is inordinate, meaning an inexcusable delay of more than a quarter of the completion period. That is the position in both the GeM GTC and the Manual for Procurement of Goods, 2024. A bid’s own ATC can set a different figure.

Is LD charged on the GST amount too?

The Manual for Procurement of Goods applies LD to the delivered price of the delayed goods, which includes GST, freight and price variations. The GeM GTC words it as the contract value of the delayed quantity.

Can liquidated damages be avoided for delays that were not my fault?

Where the delay is due to force majeure or to the buyer or consignee, the buyer can re-fix the delivery period without LD. Force majeure needs documented notice within 10 days of the event under the GeM GTC. Ask for the extension in writing before the delivery date passes.

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