• 22 minutes

Elements of Damages and Defective Construction


Construction contracts have a variety of different damage components.

Damages arising out of the breach of construction contracts are often separated into the categories of direct costs and indirect costs. Direct costs are due to the performance of a contract and indirect costs are due to the operations of the contractor. In order for a direct or indirect cost to be allowable, it must be justifiable. The Federal Acquisition Regulation is often used by many jurisdictions to determine what costs are justifiable. This video reviews the different elements of damages occurring from a construction contract breach, including allowable costs, direct labor, site overhead, insurance and bond premiums and taxes; and discusses damages for defective or incomplete work.

Runtime: 21 minutes



Brandon G. Hummel

Brandon G. Hummel

Hummel Law Group

  • Founder and owner of Hummel Law Group and focuses his practice in commercial litigation, con-struction law, insurance coverage litigation and counseling (for policyholders), real estate law, and land use law
  • Experienced litigator representing all parties on construction projects with respect to enforcement and defense of mechanics lien and bond claims, enforcement and defense of construction defect and delay claims, assertion and defense of breach of contract claims, and resolution of insurance coverage disputes
  • Peer selected as a Leading Lawyer in commercial litigation, construction law, and real estate law by Law Bulletin Publishing in 2019 and 2018 and an Emerging Lawyer by Law Bulletin in the same disciplines in 2015, 2016, and 2017
  • 2017-2019 Lorman Platinum Distinguished Faculty Member
  • J.D. degree, Northwestern University School of Law; B.A. degree, The Johns Hopkins University
  • Can be contacted at 312-599-2806 or [email protected]
Mark B. Grzymala

Mark B. Grzymala

Grzymala Law Offices, P.C.

  • Principal of Grzymala Law Offices, P.C. and focuses his practice in commercial litigation and construction law
  • Represents a variety of clients from the small business owner to Fortune 500 companies
  • Experienced litigator representing all players on a construction project with respect to mechanics lien foreclosures, bond claim enforcement, construction defects and delays, breach of contract, and consumer fraud
  • Named as a Rising Star by Super Lawyers magazine in 2016, and as a Super Lawyer in construction litigation for 2017, 2018, 2019 and 2020
  • Frequent speaker on construction law issues and author of several articles on contractor rights
  • Member of the ABA Construction Law Forum and Charter Fellow of the Construction Lawyers Society of America
  • J.D. degree, Chicago-Kent College of Law; B.A. degree, University of Illinois at Urbana-Champaign
  • Can be reached at 847-920-7286 or

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