The dispute on reducing the contractual penalty
Solomon Attorneys at Law defended the interests of the contractor under the state contract, from which a substantial penalty was withheld.
A contract for the repair of regional roads was concluded between the contractor and the customer. The work was divided into two stages, while both stages were performed by the contractor in violation of the deadlines. The customer withheld a legal penalty calculated from the price of the entire contract. The amount of the penalty amounted to almost 20% of the contract price. The contractor considered the amount of the retained penalty unfair and turned to the Bureau for help.
The lawyers of Solomon Law Fim proved in court that the amount of the penalty calculated by the customer is unfair, and therefore the penalty should be considered from the price of the stage of work, reduced by the amount of work actually accepted by the customer, and not from the price of the entire contract. The court partially satisfied the requirements of the contractor, recovering from the customer the amount of 89% of the retained penalty.