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The importance of including liquidation damages in Florida construction contracts

When starting a construction project in Florida, you should have a written contract that includes construction liquidation damages before the first nail is driven. These contracts are vital for public and private projects. These statements disclose ahead of time what damages will be awarded if specific milestones are not met. These statements are an asset if construction litigation must occur during a project or after its completion.

What factors will courts consider in construction litigation?

Florida courts will generally look at two factors when construction litigation cases are brought before them. The first factor is whether it was possible to foresee the breach before the parties signed the contract. For example, if a hurricane destroys where the construction is happening, judges will likely find the agreement unenforceable. The second factor is whether the statements in the contract accurately represent the damages one party suffered. In other words, the judge may only award a reasonable amount for the damages.

Construction litigation over missed milestones

Often construction litigation occurs because of missed milestones. Judges are likely to consider if the parties agreed to any changes to the initial contract once it becomes clear that a milestone will be missed. Furthermore, the judge will determine who was at fault for missing the milestone. Finally, the judge will look at the contract to see if it contains an upper limit on the amount of damages he can award.

Construction contracts often include the terms of construction litigation, but it is up to a judge to determine if those terms are fair to both parties if the contract is breached.