The flying pilot and owner of the tail wheel equipped airplane was practicing touch and go landings from the front seat of the airplane with an instructor pilot in the rear seat. After the flying pilot successfully completed four normal takeoff and landings and two downwind landings, the instructor pilot pulled out the carburetor heat and pulled the throttle to idle while on downwind to simulate an engine failure. The flying pilot turned toward the grass runway. The instructor pilot reported that the airplane was not positioned for a safe landing and he expected the flying pilot to go around. When a go around was not initiated by the flying pilot, the instructor pilot called out “go around” and, soon after, he moved the throttle to full open. The airplane bounced and landed hard, damaging the landing gear and right wingtip. The flying pilot reported that a go around should be initiated at “an earlier stage while simulating an engine out.”