How is damages assessed in a construction dispute?

In California, damages in a construction dispute are assessed on a case-by-case basis. Generally, if an owner of a property is suing a contractor for breach of contract, the court may award “compensatory damages.” This means that the court will decide what would be an appropriate amount of money to make up for the difference between the contractual obligation and the contractor’s failure to meet it. In addition, the court may award the owner “punitive damages,” which is an amount of money intended to punish the contractor for their actions. The court also has the power to award “consequential damages” if applicable. This is when the owner suffers damages that were caused as a result of the contractor’s breach. For example, if a contractor breaks the contract by not completing a project on time and the owner has to hire another contractor to complete the job, the court could award consequential damages to make up for the additional cost. It is important to note that the court won’t always award damages in a construction dispute. If the dispute is over an issue that can be addressed through negotiation, the court may not issue any kind of compensation. The court will also assess the “reasonableness” of any demands for damages, meaning that if the owner is seeking an overly high amount, the court may reduce the amount.

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How is damages assessed in a construction dispute?

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