How to enforce a late penalty on a home construction contract?
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How to enforce a late penalty on a home construction contract?
My contractor was 4 months late on our house. We have a standard late penalty in
the contract that he feels he does not owe. Is this a good candidate for a
lawsuit if it comes to that?
Asked on August 30, 2016 under Real Estate Law, California
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
You can sue the contractor for breach of contract for not completing the construction on time.
Your damages (monetary compensation you are seeking in your lawsuit) for breach of contract would be the amount of the late penalty stated in the contract. You may also be able to recover consequential and incidental damages which are flowing from the breach of contract; in other words, if additional damages were caused by the contractor being four months late with the construction, that would be recoverable.
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