Can client deduct liquid damages charges from the progress invoice. What is legal procedure to impose the Liquid Damages on Contractor?

How come any one can deduct the liquid damages without ascertaining the fact of damage caused or breach of contract caused by the appropriate adjudicating authority or through Arbitration in case if there is a Arbitration clause in the contract. I think due procedure of law had to be follow to seek damages for the non performance or any breach of contract. Thanks.