A Contractor Can Face Damages for Delay If There Is a Failure to Meet Deadlines
Video Transcribed: Tulsa attorney Brian Carter with Tulsaconstructionlawyer.com. And in this video, I’m going to make a quick note about the implications of the time is of the essence clause in a contract and why a contract should be very mindful before entering into a contract with time is of the essence clause.
In the event that there is a failure to meet deadlines a contractor can be exposed to damages for that delay. And if there’s an accompanying liquidated damages clause that can outline additional damages beyond what may occur as just a result of the delay, that’s why it’s important when entering a contract with the time of the essence clause, there is a considerable thought put into how the project is going to progress and contingencies built into the schedule.
So that in the event that there is a delay, a foreseeable delay that there’s room there for error, and that one can continue and hopefully meet the schedule and avoid exposing themselves to damages as a result of the delay.
Everyone typically enters into a contract with high hopes and good intentions, but sometimes when things go wrong, those considerations haven’t been fully taken into account prior to the event causing the problem. And that can result in additional costs and liability exposure. Thanks for watching Brian Carter, Tulsaconstructionlawyer.com.