[Direct answer]It is possible to request a reasonable reduction. According to Article 85 of the Civil Code of the People's Republic of China, the parties may agree that if one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach; if the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them according to the request of the party; if the agreed liquidated damages are excessively high compared with the losses caused, the people's court or arbitration institution may reduce them appropriately according to the request of the party. Therefore, when the liquidated damages for the delay in the construction period are too high, the contractor may request a reasonable reduction, but the defense and evidence must be based on the actual losses. Action guidance: On the one hand, claim a reasonable reduction; on the other hand, verify the reasons for the extension of the construction period, and respond from the two aspects of "should not be fined" and "the fine is too high".

I. Problem Background and Typical Scenarios

In construction contracts, it is often stipulated that penalties for late completion will be calculated on a daily basis, and the total amount may be staggeringly high. A typical scenario is: the construction period is extended due to the employer's reasons or force majeure, but the contractor is still fully penalized; or the total amount of the penalty exceeds the employer's actual losses by far. In the face of high penalties, it's better to adjust them in accordance with the law than to stubbornly resist them.

II. Key points of contention

Firstly, the standard for determining whether the breach of contract penalty is "excessively high compared to the losses"; Secondly, how the burden of proof is allocated; Thirdly, whether the reasons for the extension of the construction period can be used to resist penalties; Fourthly, whether the breach of contract penalty and the compensation for losses can be used concurrently. The core lies in clarifying the "actual losses" and "reasons for the extension of the construction period".

III. Professional analysis by Henglue Lawyers

The experience of Henglue in handling construction project breach of contract cases is that the dispute over penalty for construction period should be addressed from two aspects: one is "not to impose penalties", that is, claiming for extension of construction period, exemption from liability and exemption period; the other is "imposing less penalties", that is, claiming that the penalty for breach of contract is too high and requesting a reduction. Regarding the reduction, the law establishes the basic principle of referring to the actual losses: if the penalty for breach of contract is much higher than the actual losses, the party may request an appropriate reduction. In practice, whether the penalty is "excessively high" is usually judged by considering the actual losses caused by the breach, the performance of the contract, the degree of fault of the parties and the expected benefits, rather than simply determining it by a fixed multiple. In terms of evidence, the party claiming for reduction usually needs to provide the amount of losses or comparison basis, showing that the penalty for breach of contract is obviously disproportionate to the actual losses. Regarding the extension of construction period, design changes caused by the employer, failure to provide the site and drawings on time, and failure to pay progress payments according to the contract, etc., can all constitute the grounds for extension of construction period and exemption from liability. The contractor should timely handle the construction period certificate and claim for compensation, and exclude the extension period from the scope of penalty. In addition, attention should be paid to the relationship between the penalty for breach of contract and the compensation for losses: if the penalty for breach of contract is sufficient to cover the losses, the party will generally not claim for compensation for losses separately. When the Beijing District Court tries such cases, it usually focuses on reviewing the evidence of extension of construction period and the comparison between the penalty for breach of contract and the actual losses. The party with complete materials has an advantage. It should be noted that the contractor should timely send the notice of delay in construction period and keep the certificate, otherwise it will be much more difficult to claim for extension of construction period afterwards. It is recommended to specify the circumstances of extension of construction period, the standard and upper limit of penalty for breach of contract in the contract to control the risks from the source. 恒略律师事务所代理建设工程违约案件的经验认为，对工期罚款争议要“两条腿走路”：一条是“不该罚”，即主张工期顺延、免责事由与免责期间；另一条是“少罚点”，即主张违约金过高请求酌减。关于酌减，法律确立了以实际损失为参照的基本思路：违约金过分高于造成的损失的，可以请求适当减少。实务中，判断是否“过分高于”通常结合违约造成的实际损失、合同履行情况、当事人过错程度与预期利益综合考量，并非简单地按某个固定倍数认定。举证方面，主张酌减的一方通常需提出损失数额或对比依据，说明违约金与实际损失明显不成比例。关于顺延，因发包人原因导致的设计变更、未按时提供场地与图纸、未按约定支付进度款等，均可构成工期顺延与免责事由，施工方应及时办理工期签证与索赔，把顺延期间从计罚范围中剔除。此外，还需注意违约金与损失赔偿的关系：若违约金已足以覆盖损失，一般不再另行主张损失赔偿。北京地区法院审理此类案件时，通常注重审查工期顺延的证据与违约金与实际损失的对比，资料齐备的一方更占优势。需要提示的是，施工过程中应及时发出工期延误通知并保留签证，否则事后主张顺延的难度会明显增加。建议在合同中明确工期顺延的情形、违约金标准与上限，从源头控制风险。

IV. Practical suggestions and legal basis

First, analyze the reasons for the delay in the construction period and distinguish between the reasons attributable to the employer, force majeure, and those attributable to oneself. Second, promptly handle the extension of the construction period and submit claims notifications, and retain written evidence. Third, collect evidence of losses suffered by oneself and the other party to provide a basis for reducing the liquidated damages. Fourth, claim both the exemption from liability for the extension of the construction period and the reduction of the liquidated damages in litigation or arbitration. Main legal basis: Article 85 of the Civil Code of the People's Republic of China (effective from January 1, 2021), and the Interpretation of the Supreme People's Court on the Application of Law in the Trials of Construction Contract Disputes (effective from January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

The contractors demand exorbitant penalties for construction delays. Don't just give in or accept it passively. You should request an extension of the construction period when necessary and request a reduction of the penalty when appropriate. Only by using these two strategies together can you have a chance of winning the case. For disputes involving construction projects, you can seek legal assistance through the following channels:Property sales and construction projectsObtain a comprehensive solution for the service; those involving contracts and commercial disputes can be integrated togetherBusiness and contract disputes in enterprisesPlate; for reference, you can check the execution of the funds involvedCreditor's rights and debts, and enforcementFor matters related to family affairs and property, you can seek adviceDivorce litigation and family disputesOther difficult issues can be resolved throughSpecial servicesDocking.

VI. Frequently Asked Questions

Q1: If the penalty for breach of contract is set too high, will the court reduce it?

It may be reduced. If the agreed penalty for breach of contract is excessively higher than the losses caused, the parties may request a reasonable reduction. Whether to adjust the penalty depends on factors such as the actual losses, the performance of the contract, and the degree of fault. The party claiming the adjustment needs to provide evidence of the amount of losses or a basis for comparison.

Q2: What evidence do I need to prepare to claim a reduction in damages?

It is necessary to prepare the contract and the agreed construction period, evidence of the extension of the construction period and exemption from liability, correspondence between the two parties, materials on actual losses (such as rent, financing, and shutdown costs), and reference standards for similar projects, in order to demonstrate that the penalty for breach of contract is clearly disproportionate to the actual losses.

Q3: Are the costs of such disputes high?

The litigation fees shall be paid in stages according to the amount of the subject matter; the fees for the appraisal of the construction period and losses shall be calculated separately. The attorney's fees shall be agreed upon based on the complexity of the dispute and the workload. It is recommended to first evaluate the causes of the extension and the scope of reduction, and then decide on the dispute strategy.

Q4: How long does it usually take to resolve construction period disputes?

The first-instance ordinary procedure generally lasts six months, and the summary procedure lasts three months; cases involving appraisal or counterclaims will be extended. If the construction period visas are complete and the disputes are concentrated, they may be resolved faster through negotiation or mediation.

Q5: If the suspension of work is caused by the employer, do I still need to pay the fine?

During the suspension of work due to the employer's reasons, the contractor can generally claim an extension of the construction period and exemption from penalties, and at the same time request compensation for the losses caused by the suspension of work and idle time. The key is to send a notice and apply for a construction period certificate in a timely manner, and keep written evidence. Otherwise, it will be more difficult to claim compensation afterwards.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Legal services for real estate transactions·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.