If a licensee fails to commence work within 20 days of the approximate date specified in the contract, what happens to the next payment?

• A. Postpone the next succeeding payment for the period between the expected and actual commencement
• B. Terminate the contract immediately
• C. Demand a new contract with revised terms
• D. Charge a penalty fee immediately

Answer: (A)

Delays in starting work are treated as a timing issue rather than a breach that ends the contract. If the licensee doesn’t begin within 20 days of the approximate start date, the contract provides that the next payment is postponed for the period between when work was expected to start and when it actually starts. This keeps compensation fair and aligned with progress, avoiding payment for time when no work is underway. It’s a practical remedy that prevents penalizing the client for a delay while the contract remains in effect and work can proceed once started. The other options—terminating the contract, demanding a new contract, or charging a penalty—don’t reflect the intended adjustment to the payment schedule for a late start.