Legal Question in Construction Law in California
We are doing a contract for a city and a supplier has sent the wrong material twice. The city is now assessing liquidated damages. Can they do this? We have done everything we can to get the products to the city as soon as possible.
1 Answer from Attorneys
If you have a contract with a public entity that includes a liquidated damages clause, you are liable for liquidated damages if you go over the time limit unless you are granted an extension or the public entity caused the delay. Your remedy is to finish the contract as quickly as possible, including finding the material from another supplier if possible and necessary, and then back charging or if necessary suing the material supplier for causing your losses. In order to do so, you should also put the supplier on notice immediately that they have caused and are causing liquidated damages.
Related Questions & Answers
-
Construction Industry, CA: Is there separate bond/insurance available for RMO... Asked 5/02/16, 12:26 pm in United States California Construction Law