Section 8.17 Contractor Liability to Owner for Delay

• Library: Construction Law 2016 Supp

F. (§8.17) Contractor Liability to Owner for Delay

The general rule is that a contractor is required to complete a contract within the time specified unless the time is extended or excused. Without a time for performance specified in the contract, the law will imply a reasonable time for performance. ArtCraft Cabinet, Inc. v. Watajo, Inc., 540 S.W.2d 918 (Mo. App. W.D. 1976). Moreover, if the specified time is waived and no other time is fixed, the law will imply a reasonable time for completion of performance beyond the originally specified time for performance. Three-O-Three Invs., Inc. v. Moffitt, 622 S.W.2d 736 (Mo. App. W.D. 1981).

The construction contract may include a liquidated damages clause to compensate the owner for the contractor’s late performance. Such a clause typically...