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Liquidated damages for delayed completion of project recovered from subcontractor is capital receipt or revenue receipt?

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Question added by Mihir Kali Bhattacharya
Date Posted: 2016/05/12
Imran khan, PMP
by Imran khan, PMP , Project Engineer/ Project Manager LV/LC , Engineering Consultants Group (ECG)

I believe that it should be kept as revenue as the the LDs are usually for delayed project completion meaning delayed operations beginning and are a compensation towards such delayed operation and lost revenue against such delay operation. Project Capital remains the same with no changes. 

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