Q: Can I, as direct general contractor, charge late fee $250 (daily) for non payment of final invoice?

A: Charging of any late fee for failing to pay is governed by the original contract you signed for the project. However, if the amount is disproportionate to the balance, the provision could be struck by the Court as an unconscionable term of the contract. Also be aware that you have the burden of proving that you had a valid contractor's license to perform the work. If you delay unnecessarily in filing suit to recover your payments, the Court could find that you did this to increase the amount owed, unreasonably. This is in the area of contract and construction law. You need to discuss this with an attorney that specializes in this kind of law right away. Thank you for using Justia, Ask a Lawyer.

A: In many jurisdictions, the enforceability of late fees depends on various factors, such as whether there is a written contract in place that specifically addresses late fees, whether the late fee is considered reasonable and proportional to the actual damages incurred, and whether local laws or regulations impose any restrictions on late fees.

Some jurisdictions may have statutory limits on the maximum amount that can be charged as a late fee, while others allow the parties to negotiate and agree upon the terms independently. Additionally, courts may also consider whether the late fee is intended to compensate for actual damages suffered by the contractor as a result of the late payment or if it is considered a penalty.