In a breach of construction contract case, monetary damages are a possibility. Construction projects involve multiple moving parts, and when something goes wrong, the financial consequences can be significant. If a contractor, subcontractor, or property owner breaches a construction contract in Oklahoma City, the non-breaching party may be entitled to recover monetary damages. These damages aim to place the injured party in the position they would have been in if the breach had not occurred.
Types of Damages Available in Oklahoma Construction Disputes
Courts in Oklahoma generally recognize the following categories of monetary damages in construction contract cases:
1. Compensatory Damages
Compensatory damages are the most common and aim to reimburse actual financial losses resulting from the breach. This can include:
- The cost to complete unfinished work or correct defective workmanship
- Payments made for services not properly performed
- Lost profits, if the breach prevented the project from generating revenue
- Additional expenses such as hiring another contractor or project delays
To recover these damages, you must show clear documentation of your financial losses, such as invoices, receipts, expert evaluations, and payment records.
2. Consequential Damages
Consequential damages cover losses that stem indirectly from the breach but were foreseeable at the time of contracting. For example, if a delay caused by the contractor led to loss of rental income or penalties from missed deadlines, those damages may be recoverable.
Oklahoma courts typically require a higher level of proof for consequential damages, including evidence that the breaching party knew or should have known about the potential for those losses.
3. Liquidated Damages
Some construction contracts in Oklahoma include a liquidated damages clause—a pre-agreed sum payable if a specific type of breach occurs (often for delays in project completion). Courts enforce these clauses as long as they are not punitive and reflect a reasonable estimate of actual damages at the time the contract was signed.
4. Punitive Damages (Rare in Contract Cases)
While rare in breach of contract cases, punitive damages may be awarded if the breaching party acted with fraud, malice, or gross negligence. This usually requires a separate claim (such as fraud or bad faith) beyond a simple contract violation.
Proving Your Damages in Court
To recover monetary damages, you must show that:
- A valid contract existed
- The other party breached the contract
- You suffered financial harm as a direct result of the breach
- The damages can be calculated with reasonable certainty
Courts may rely on expert testimony to assess the cost of repairs, replacement, or lost revenue.
Mitigation of Damages
Oklahoma law also requires injured parties to take reasonable steps to minimize their losses after a breach. For instance, if a contractor walks off a job, the property owner must try to find a replacement and avoid unnecessary delays or expenses. Failure to mitigate damages could reduce the amount the court awards.
Oklahoma City Construction Law Attorneys
If you’re dealing with a breach of a construction contract in Oklahoma City, understanding your rights to monetary recovery is essential. Contact our construction law attorneys at Kania Law – OKC Attorneys can help. Call us today at 405-367-8710 or ask a question online.
