When a Client Breaches a Contract with a Construction Contractor

question 80

Multiple Choice

When a client breaches a contract with a construction contractor in the early phase of construction,what is the contractor generally able to recover?

• A)The amount of the contract price.
• B)Only the out-of-pocket costs incurred by the contractor up to the time of the breach.
• C)The amount necessary to provide the same profit to the contractor that the contractor would have earned if the contract were fully performed.
• D)Three times the contract price as punitive damages.
• E)The amount determined by the court to have been a fair profit on the contract.

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Definitions:

Sourcing Processes

The activities involved in finding, evaluating, and engaging suppliers of goods and services.

Effective Sourcing

The process of identifying and procuring goods and services from external sources that meet the company's standards in quality, price, and delivery time.

Evaluation Period

A specific timeframe during which a process, performance, or project is reviewed and assessed for effectiveness or achievement of objectives.

Sales Efforts

Activities undertaken to increase the visibility and desirability of a product or service to potential customers, aiming to drive sales and revenue.