Rehabbing Contract Wording Help Please.

Hello

I am taking bids on rehabbing my first house. I have just about finished the contract. I want to put in a Penalty Clause because contractors that charge a certain amount per day for each day he is over the date that he said he would be done. I am thinking the penalty would be about $100.00. I need a little help wording this clause.



Thanks

MrBossman

Comments(6)

  • happyhome10th January, 2006

    Do not use the word penalty, but do use "Contractor to pay liquidated damages of $100 per day for each day beyond agreed completion date".

    $100 per day is a reasonable amount and should work well. You can do an internet search as to various applications of liquidated damages.

  • MrBossman11th January, 2006

    Thanks Happy

  • venator6412th January, 2006

    My nieghbor (in San Diego) did it for around $100 a sq ft...

  • mattfish1112th January, 2006

    Thanks! That helps at least get an idea of what it would take...

    Anybody else?!?
    [addsig]

  • housebuyer61911th January, 2006

    I list with a flat rate MLS service and then offer 2.25 commision. I pay $599 for the listing and then it works just like a any other listing, except I am the selling agent(FSBO)

  • NC_Yank12th January, 2006

    My agent and I just worked out a deal where
    she is listing my houses on the MLS for 1%.......(FSBO), for that fee she does all the paper work and comes to closing............ if another agent sells it.....they get 2.5%. If she is the selling agent then its a straight 3%.


    NC

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