
Penalties for Delay in a Work Contract – What Are Your Rights
Content:
When people hear the word “penalty”, they usually think of a contractual fine. But in contracts for work, missing a deadline can trigger much broader legal consequences.
Clients wait, projects stall, budgets inflate – and tensions rise.
What started as a simple scheduling issue can evolve into a complex legal dispute.
The worst part? It’s often just poorly defined timing or missing penalty clauses.
The deadline for completion is a critical component of any contract for work. It’s not merely a technical point – it directly affects the rights and remedies of both parties.
One common mistake is vague language. For example, stating “the work will be completed within 3 months from commencement” without specifying when the project actually starts.
Or worse – no penalties are included in the event of delay.
If the contractor is late, the client may seek damages. However, this requires proof of loss, which can be difficult. That’s why most contracts include a contractual penalty clause – e.g. 0.1% of the contract price per day of delay.
This ensures compensation without the need to prove actual damages.
Contractors may defend themselves if the delay was caused by the client – for example, by not providing access to the site or failing to approve required documents.
It’s also crucial to define whether the deadline is binding or indicative. If unclear, courts will interpret the situation – often not in your favor.
In serious cases, the delay may justify termination of the contract, especially when deadlines were essential. But again – you must follow the rules, and the contract should support this right.
Some clients ask whether they can withhold payment due to delay. That depends on the wording of the contract – doing so without legal grounds might backfire.
The safest approach is to address deadlines and consequences clearly in the contract. If you’re already facing a delay, seek legal advice – there are still remedies, but time matters.
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- Naposledy aktualizováno: 17/06/2025