Your field switch for the ordinals is wrong. You should be using:
{MERGEFIELD Contract_DemandDate \@ "d" \* Ordinal}
To see how to do just about everything you might want to do with dates in Word, check out my Microsoft Word Date Calculation Tutorial, at:
http://windowssecrets.com/forums/sho...ation-Tutorial
or:
http://www.gmayor.com/downloads.htm#Third_party