In construction projects, construction time overruns, workable days and contractual penalties are important issues often addressed in construction contracts. Construction time is the period of time during which the work must be completed according to contract. If exceeded, contractual penalties can be imposed on the contractor unless there are unworkable days, such as bad weather conditions, that are beyond the contractor's responsibility.
When a construction project exceeds the agreed-upon construction time, there can be major consequences, both financial and practical. For example, it can mean that a home is delivered later than expected, which can lead to unforeseen costs for the buyer. Many construction contracts include a penalty clause that requires the contractor to pay a monetary penalty for each day the construction time is exceeded. This provides an incentive for the contractor to complete the project on time.
The term “workable days” refers to days when construction work can actually be performed. Unworkable days, such as extreme weather conditions or holidays, can cause delays, but are usually excluded from the agreed-upon construction time. It is important to make clear agreements in the contract about what does and does not count as a workable day so that both parties know where they stand.
Many construction contracts include a penalty clause to ensure that the contractor keeps to the agreed upon construction time. This means that the contractor owes a penalty for each day that completion is delayed without a valid reason. The amount of this penalty is set in advance in the contract and provides the client with a degree of compensation for the loss suffered.
Are you facing a construction project and concerned about construction time or potential penalties? Our construction lawyers are ready to help you with expert advice and legal representation. Contact us today for a no-obligation consultation.
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