Final answer:
When an owner breaches a construction contract, the contractor can generally recover costs incurred, lost profits, and damages for any performed work. Construction contracts may also specify terms for delayed possession, potentially leading to contract prorating or cancellation with a refund.
Step-by-step explanation:
When an owner breaches a construction contract, the contractor may be able to recover various types of damages. Typically, a contractor can seek compensation for any losses directly resulting from the breach. These may include costs incurred, lost profits, and damages for any work that has been performed to date. If possession of the site is delayed, as mentioned in the given reference, the contractor could seek damages for the delay as well. Moreover, in some contracts, there may be specific clauses that address the consequences of failure to deliver possession, allowing for the cancellation of the agreement with a full refund of any sums paid.
In the situation where possession of the project site is not granted on time due to reasons such as loss, destruction, or previous occupants not vacating, and neither party cancels the contract, the agreement could be prorated to start on the actual possession date. It is important to note that the ability to recover damages and the types of recoverable damages will depend on the specific terms outlined in the construction contract and the applicable law.