Contracts and Specifications Examples

A contract specifies a completion date of October 1st. The contractor finishes the project on October 15th. The contract includes a Liquidated Damages (LD) clause of $1,500 per calendar day of delay. The owner claims they lost $20,000 in potential rent during those $15$ days. How much can the owner deduct from the contractor's final payment?

A contractor is $30$ days late on a project. However, they properly documented and requested a time extension for $10$ days of severe, unseasonable weather (excusable/non-compensable) and $5$ days due to the owner failing to provide site access (excusable/compensable). The LD rate is $2,000 per day. What are the final liquidated damages?

A contract imposes liquidated damages of $3,000 per day for missing the completion deadline of June 1. The contractor reaches Substantial Completion on June 11 but completes the final punch list items on June 20. How much is assessed in liquidated damages?

A contractor bid on a highway project containing an estimated $5,000$ cubic meters ($m^3$) of excavation at a unit price of $12.00 / $m^3$. After the work was completed, surveyors measured the actual excavated volume to be $5,400 \, m^3$. How much is the contractor paid for this item?

A contract estimated $10,000$ tons of asphalt at $80 / $\text{ton}$. The contract includes a clause that if actual quantities vary by more than $20\%$ from the estimate, unit prices must be renegotiated. The actual quantity required was $13,000$ tons. The contractor proved their costs increased, and the new agreed price for the overage is $90 / $\text{ton}$. Calculate the total payment.

A contractor has a Lump Sum contract for a building project worth $2,500,000. At the end of the second month, the project is assessed to be $35\%$ complete. The contractor previously received a payment of $400,000 for the first month. The contract specifies a $10\%$ retainage. What is the net payment due to the contractor for month two?

A contract is signed for Cost Plus a Fixed Fee of $100,000, with a Guaranteed Maximum Price (GMP) of $1,500,000. During construction, the contractor experiences severe cost overruns, and the actual reimbursable cost of the work reaches $1,450,000. How much is the contractor paid, and what is their effective profit?

A contractor operates under a GMP contract set at $2,000,000. The agreement includes a $60\% / 40\%$ shared savings clause ($60\%$ to the owner, $40\%$ to the contractor) for any final costs below the GMP. The contractor's fixed fee is $150,000. If the final reimbursable costs are $1,700,000, calculate the total amount the contractor receives and their total profit.

A conflict arises during the construction of a commercial building. The general conditions of the contract state that testing of concrete must be done by an independent lab paid for by the owner. However, the technical specifications for concrete clearly state that the contractor must hire and pay for the testing laboratory. In a typical contract hierarchy, how is this conflict resolved?

A contractor is excavating for a foundation when they encounter unexpected, undocumented bedrock not shown in the geotechnical report provided by the owner. The owner's representative insists the contractor must proceed with the excavation without extra pay, arguing the contractor should have inspected the site better. The contractor proceeds but files a claim for extra costs. What contract concept applies here?

A city municipality signs a contract for a new community center. Halfway through the project, a new mayor is elected who decides to cancel the project to redirect funds elsewhere. The contractor has not missed any deadlines or performed defective work. How can the city end the contract, and what are the financial implications?

An owner provides a contractor with highly detailed blueprints and specifications for a custom HVAC system. The contractor builds the system exactly as specified, without deviation. However, upon startup, the system fails to adequately cool the building because the engineering calculations provided by the owner's designer were flawed. The owner demands the contractor fix the issue at their own expense. Who is liable?