That's my point as well. We buy a property to use - whether rent out or own stay.
Imagine an extreme situation where they delay for 5 years! The longer they delay the risks increase as well - the risk that they will find some fine prints in the contract to avoid/reduce paying the LD to you.
Look at it this way bro - There's a higher chance for a default in payment from our tenants then a default in payment from UEM. Moreover, the amount which UEM is paying us per month for late delivery is considered quite a good rental in today's market and we don't need to spend extra in advance to do up the house and also losing a few months of rental while getting the house done.
That's if your plan is to rent out. If one plans for own stay and needs the house urgently, that's a different story. Maybe they can use the late delivery payment to rent a place temporarily.