Incentive for Timely Completion Clause
(Private Project Construction Contract)

Summary

This incentive clause may be included in a construction contract for a private project to incentivize the contractor to finish work before the agreed upon deadline. This clause includes practical guidance and a drafting note. Capitalized terms used in this clause should be conformed to those used in the relevant agreement. For more information on incentives for construction contracts, see Construction Law P 3A.08. For additional construction resources, see Construction Resource Kit. For a construction contract template, see Construction Contract. For information on payments on private construction projects, see Construction Owner-Contractor Payment Resource Kit. See also Prompt Payment Acts and Lien Waivers (Private Construction) State Law Survey. For a liquidated damages clause template for use if the project is completed late, see Liquidated Damages Clause (Daily Payment by Contractor) (Private Project Construction Contract). For a list of key resources covering construction-related tasks for associates, in-house attorneys, and interns, see First Year Associate Resource Kit: Construction, Junior Associate Resource Kit: Construction, Summer Associate Resource Kit: Construction, In-House Construction Resource Kit, and Federal Government Summer Intern Resource Kit: Construction.