In many cases, those who seek the services of a construction company in Louisiana usually have a deadline they must meet. A small business may need an additional showroom added before their big sale, or a homeowner may need that patio constructed for when they are scheduled to show their home to potential buyers. Although rarely mentioned, not meeting this deadline can result in the client losing money. Can you obtain compensation for financial losses caused by a delayed construction project?
No compensation wording in the contract
Having no mention of a loss of profits within the initial contract is often a very common occurrence. The fact is that clients are usually confident in their chosen construction company to finish the job in time. So, what happens if there is nothing inserted? If you’re a business owner who has lost profit due to an unfinished showroom, your business law attorney may use common law to justify financial loss compensation.
In cases where compensation for delayed construction is discussed, it is likely that both parties will agree to what is called liquidated damages. This means that in the event of a delay, the client won’t be asking for an estimated amount of loss of profits. Instead, both parties will agree on a daily rate that would be more accurate and benefits both parties involved. However, careful attention should be paid to the rate you offer your contractor. For example, too low of a rate and they may end up benefiting from stretching out the project, too high, and you may end up with sub-par work.
As you may be able to tell from the information above, compensation for construction delay is quite complex. Thus it is highly recommended to seek the services of an attorney as soon as possible. An attorney may be able to provide you with a number of routes to take in order to obtain the proper compensation.