What are the losses incurred by the contractor for not completing the project on time called?

The correct term for the losses incurred by the contractor for not completing a project on time is liquidated damages. Liquidated damages refer to a predetermined amount of money that a contractor agrees to pay if they fail to meet the specified deadlines outlined in a contract. This concept is crucial in construction and other project-based contracts, as it provides a clear financial consequence for delays, ensuring that contractors are motivated to adhere to the project timeline.

Liquidated damages are typically established at the outset of a contract and serve as a method to quantify the potential losses that might be incurred by the client due to the delay, such as lost revenue or additional costs. By agreeing to these terms, both parties have clarity about the consequences of delays, which helps to mitigate disputes and encourages timely performance.

In contrast, other terms like reimbursement or reparation do not specifically address the consequences of late project completion. Reimbursement generally pertains to the return of costs already incurred, while reparation typically covers compensation for injuries or damages rather than contractual delays. Deadline compensation is not a standard legal term used in contracts, making liquidated damages the most accurate answer in this context.