[ CONSTRUCTION LAW ]
Contractual penalties held not due
General contractor’s dispute with the investor
- Client
- General contractor, residential development
- Problem
- The investor charged contractual penalties for delay and deducted them from the retained fees withheld from each invoice. Those amounts were to be released after the investor accepted the works and approved the final invoice.
- Action
- The case showed that the delay resulted from changes introduced by the investor during the project, including an extended scope of works and errors in the design documentation, and not from any fault of the contractor.
- Outcome
- The court held the penalties were not due. The contractor recovered PLN 1.5 million in fees together with interest.
