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New York Construction Law Blog

Common remedies for breach of construction contracts

Posted by Karl Silverberg | Sep 24, 2021 | 0 Comments

A breach of the contract is a risk anyone who enters into a legal agreement faces. If you are in the construction industry, there is a pretty good chance that you will run into a contract that does not deliver on the agreed terms. 

Contracts are legally binding agreements. As such, if one party fails to uphold their end of the deal, then the aggrieved party may consider exploring the appropriate cause of action. When one party breaches a contract, the injured party may be entitled to the following legal remedies. 

Resulting damages

Damages are probably the most common remedy when there's a breach of contract, and it is typically what most aggrieved parties go for in such instances. This is because damages essentially equal money. The amount of money the “injured party” can seek in damages will depend on the specific circumstances. There are many different types of damages a party can seek:

  • Compensatory damages for actual injury or losses incurred
  • Punitive damages to penalize the breaching party if their breach was vindictive, egregious or intentional
  • Liquidated damages as specified in the contract


A rescission can be issued to terminate the rights of either party to the contract with the goal of restoring both parties to the positions they were in before entering into the contract. A rescission is a common remedy in a breach of contract case since it does not oblige the parties to continue working together following the breach. 


Reformation, just like rescission, does not compel any party to the contract to pay the other for the breach. Also, it does not force the parties in the agreement to continue working together after a breach of contract. However, reformation ensures allows for the reinstatement of the agreement after there's a revision of the contracted parties' duties and obligations.

No matter the nature of the construction dispute, it is important that both parties in the contract understand their duties and obligations. Disputes are prone to happen during a project's life cycle – which is why you must protect yourself by understanding the remedy options you can opt for in the event of a breach of contract. 

About the Author

Karl Silverberg

Karl Silverberg Contact Me: (631) 778-6077 Email me Practice Areas: Construction Law Biography Prior to law school, Mr. Silverberg worked as a professional engineer, and has eight years of experience working as a structural engineer on public sector transportation projects. Mr. Silver...


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