Originally published by Matthew DeVries on Best Practices Construction Law blog.
In Old Colony Construction, LLC v. Southington, 316 Conn. 202 (2015), the Connecticut Supreme Court concluded that a contractor was liable for liquidated damages for project delays after being terminated for convenience, even where the project owner was partially responsible for the delays.
Since the contract expressly provided that the town could terminate the contract without cause and without prejudice to any of its other rights or remedies, the court held that the town’s termination of the contractor for convenience did not preclude recovery of liquidated damages.
if you are a contractor that regularly works with public owners, you should make sure to do the following:
- Read your contract
- Document your claims
- Expect the unexpected
(more on the court's opinion in this case...)
