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Understanding Consequential and Liquidated Damages Part 2

As Orlando construction attorneys, we represent contractors and construction industry professionals that may have experienced damages from a breach of contract. Whether or not these damages transpired directly on the jobsite or affected other revenue opportunities, we are here to offer contractors legal counsel.

In this four-part article, we first covered direct and indirect damages you can experience because of a breach of contract in the first section. We will continue to explore consequential damages in this section. In the third and fourth section, we will discuss liquidated damages.

Reviewing Your Contract

Contractors need to closely analyze their contract for consequential damage clauses to obtain a complete understanding of the owner’s policy. If a project experiences a lengthy delay, the contractor needs to be ensured that they will be appropriately compensated with both the direct and indirect damages they incur. It’s also important to continue to focus on the contract well after it has been signed as well to ensure that the expectations of the contract are being met. The language of the contract will be critical to potentially recovering any compensation if a damage claim needs to be filed.

Disputing Consequential Damages

When negotiating a contract, often owners require contractors to waive their right to consequential damages. In other cases, the contract’s language is so vague that it is difficult to file a claim seeking reimbursement for these damages. By nature, consequential damages are considered a result of exceptional conditions that are more challenging to prove in a court of law because the breach of contract must be “foreseeable.” In other words, these consequential damages are often seen by the court as unfounded because they were so poorly defined in the language of the contract. It’s paramount to have the right Orlando construction attorney to review your contract to ensure you are protected.

If you are a contractor and you are owed consequential damages, contact an Orlando construction attorney today.

If you would like to speak with one of our Orlando construction attorneys, please contact us at 407.378.6575, or submit our contact request form.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.