Enforcement of performance penalties
3If a contract provides that a contractor shall pay a penalty if he or she fails to complete the performance of the contract within the time stipulated in the contract, or any extension granted under the contract, that provision is enforceable against the contractor despite the following:
(a)
the penalty is not a pre-estimate of damages likely to be caused by non-performance by the contractor within the stipulated period; and
(b)
the contract includes a provision for liquidated damages.