Legal Question in Construction Law in Pennsylvania
liquidated damages
we did construction work for dcnr(sewer main construction)project was completed on time (with the exception of fence work)we had a sub contractor for the fence work.first they ordered and delivered the wrong type fence. it was rejected.(understandable).they then had to order the correct fence.when they received the correct fence and delivered it,the fence was excepted but now dcnr would not except the contractor becuse they did not have enough insurance.we payed for an insurance policy for this contractor so they could complete the work.by this time the contract time had run out.we ask for an extension of time but was denied.we were hit with $10,000.00 in liquidated damages,for time over run.they were using the sewer system before the time ran out,they just did not have the fence up.my questions are.when they started to use this system did they except it as complete? the sub contractor problem was beyond our control and we payed for the insurance policy so they could expidite this work,should they not have granted an extension of time?should they not return the damages?
1 Answer from Attorneys
Re: liquidated damages
I disagree that the subcontractor problem was "beyond your control." You control, legally, your subcontractors. You should have ensured that they had the proper amount of insurance prior to it becoming a problem.
What I'm saying is that only you had a contract with who hired you...the subcontractor didn't. Subcontractor's contract was with you. Your action now is against the subcontractor, who may be responsible to reimburse you for what you lost.
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