Published 17/11/2026 1 min readChoosing a company
Construction Schedules and Contractual Penalties: Protecting Against Delays
How can you protect yourself against construction delays? A work schedule and contractual penalties in the agreement — realistic values, exceptions, and what you shouldn't overdo.
A construction project without a schedule is a 'hope for the best' project. And 'hope for the best' takes 30% longer and costs 20% more.
What to include in the contract
- Schedule with stage deadlines — not just 'finish in June', but: shell by February, installations by April, finishing by June.
- Payments linked to stage handovers — you pay for what is accepted, not for what was promised.
- Penalties for delay — realistically 0.1–0.3% of the stage value per day (for a £160,000 house and a £40,000 stage, that is £40–£120/day).
- Symmetrical penalties — if you are late with payment or a decision, the penalty should work both ways. This increases the chance that the company will accept it.
Exceptions that the company is right to demand
- Construction winters — if the work depends on the weather (facade, concreting).
- Force majeure — deliveries, breakdowns.
- Your delays — in decisions, material deliveries on your part.
What not to do
- 'Intimidating' penalties (5%/day) — no reasonable contractor will sign, and if they do — it is a sign that they do not believe in their own deadline.
- Without a notification clause — the company should report a delay before it happens, not after.
Orders on LocalTrader include a schedule and a work log — and companies that fear deadline clauses are filtered out at the bidding stage.
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