Financial penalty

[ameneses54]

I'm planning on adding a financial penalty clause to my contractor contract in which I will specify a dollar amount per day if the project is not finished in time.
Any ideas on what amount is fair and customary?

Arturo

[JaredfromIndiana]

I'm planning on adding a financial penalty clause to my contractor contract in which I will specify a dollar amount per day if the project is not finished in time.
Any ideas on what amount is fair and customary?

I can't remember what I used to charge my contractors... I do remember that it was an amount that would hurt them, but not scare them away. Let me ask my contractor friend and get back to you.

[ameneses54]

Originally Posted by JaredfromIndiana

I'm planning on adding a financial penalty clause to my contractor contract in which I will specify a dollar amount per day if the project is not finished in time.
Any ideas on what amount is fair and customary?

I can't remember what I used to charge my contractors... I do remember that it was an amount that would hurt them, but not scare them away. Let me ask my contractor friend and get back to you.

Thanks for the reply, I'll be waiting for your guidance

Arturo

[flippinout]

We always appreciate Jareds help here at New House Flip. Hes a very smart fellow and is always willing to share his knowledge.

Thank you so much Jared for answering all these questions that you do.

[tony00]

You should not be charging them with the amount that would scare them away. think as a contractor and then decide a fair amount. I would suggest you the lowest amount they can not afford.

[ameneses54]

Originally Posted by tony00

You should not be charging them with the amount that would scare them away. think as a contractor and then decide a fair amount. I would suggest you the lowest amount they can not afford.

"the lowest amount they can not afford', would that be $50,$100 or how much?
Please,I need real life answers.
At this very moment my contractor is late 2 weeks and it's going to be three or even more and I can't do a thing. It's very frustrating.

[flippinout]

Im sorry that I havent gotten back to you before now. My computer crashed on me but is finally up and working again.

Let me do some research and see what I can find for you. I will try to have this information ready and posted by tomorrow.

Thank you for your patience.

[ameneses54]

Originally Posted by flippinout

Im sorry that I havent gotten back to you before now. My computer crashed on me but is finally up and working again.

Let me do some research and see what I can find for you. I will try to have this information ready and posted by tomorrow.

Thank you for your patience.

Dear Sir,
I'm really sorry I insist but my question is quite important.

Arturo

[flippinout]

I have been looking but havent found the information that you need, but one thing you should check on first of all is to find out if that clause in the contract would be enforcable if you did have it.

I will call a friend of mine tonite and see if he has any ideas on this situation.

[flippinout]

Hes out of town until Monday. But I will keep looking to see what I can find for you.