HouseChalkLiquidated damages
Liquidated damages are a pre-agreed daily or weekly financial penalty the builder pays if the project is delayed past the contracted completion date.
Why it matters
It creates a financial incentive for the builder to finish on time and helps cover your costs (like extended rent) if they are late.
Where people get this wrong
Builders rarely agree to massive daily penalties. It is usually a reasonable estimate of actual costs. It does not apply to delays out of the builder's control (excusable delays).
Real-world example
Your contract includes $100/day in liquidated damages. The builder finishes 14 days late. You deduct $1,400 from their final payment.
Where this hits your build
This comes up early, before construction starts. It affects your contract, your budget, or both. Misunderstanding it can cost you money or leverage.
Most people do not just struggle with terms. They struggle with the decisions tied to them.
See how HouseChalk helps with the decisions behind terms like this