Legal Question in Construction Law in California
liquidated damage
I did a tenants improvement project..the contract says that I have to finish the project within 15 calendars days..this is a county project and county inspector will do the inspection...the inspector will come on the 14th day to inspect and punch list and comeback on the 15th which is the deadline of the project to do a final inspection and do a pucnhlist if there is any...what happen is the inspection did not inspect the project on the 15th day because it was hes friday off (9/80 schedule). he did inspect the project monday and has a 3 items punchlist... I right away do the punchlist and the ispection was approved that day Monday... the county charged me $1500 liquidated damage because I was late for 3 days. I argue with him that if he did show up on the inspection which is friday. I can fix any punchlist he made that day .if theres any..the inspector did not inform me that he is not coming. to do inspection on the deadline ...I am planning to take them to small claims what are my chances..
thank you in advance
1 Answer from Attorneys
Re: liquidated damage
Liquidated damages are GENERALLY not enforceable. There are exceptions to that general rule. The main issue should be, what was the nature of the work? What was the significance of it being completed on day 18 vs. day 15? Did the delay cost the County money? Did it deprive them of critical use of some road or building?
It is important to read your contract very carefully. Was it your performance that was to be complete by the deadline or was it approval by the inspector that was to be received by the deadline? If it was approval, the County should not be able to collect damages if IT failed to cooperate with YOUR efforts to deliver on time (by not coming to inspect).
You'll probably also have to consider "substantial completion" vs. full and final approval. Perhaps you only needed to acheive substantial completion by day 15.
You have a fairly complicated issue. Good luck.
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