[Direct answer]In the Beijing area, there are four steps: 1. Written notice—clearly requiring completion within a specified timeframe and stating the right to claim compensation; 2. Claiming breach of contract penalties—if the contract includes a daily breach of contract penalty clause, calculate the amount according to the agreed terms (if the agreed amount is too low, claim based on actual losses); 3. Assessing termination—if the delay is severe and the contractor loses the good faith to perform the contract, the contract can be terminated. Hire a new contractor to complete the renovation, and claim compensation for the price difference and rental losses; 4. Gathering evidence—contracts, payment receipts, notice records, and on-site progress photos should be kept throughout the process.

1. Problem background and typical scenarios

The contract stipulates that the work should be completed in three months, but it's still in the process of tiling after five months; they'll make progress when prompted, but stall when not; the construction period is delayed, and the tenant still has to pay the rent but can't move into the new house. Delays in renovation are the most common type of home decoration disputes. The key to claiming compensation lies not in "attitude", but in the contract terms and the pace of evidence collection.

II. Key points of dispute

First, the determination of responsibility for the delay and the reasons for the extension of the construction period. Second, the calculation and adjustment of the penalty. Third, the timing of contract termination and the scope of losses. Fourth, the management of payments and progress in a balanced manner.

III. Professional analysis by Henglue Law Firm

First Level: Determination of Liability The responsibility for the delay lies with the decoration contractor, unless there are contractually agreed upon circumstances allowing for an extension—such as the owner adding additional items to the design (with written confirmation of the change and extension of the construction period), the owner failing to make payments on schedule or provide required conditions (water and electricity connections, property formalities), or force majeure. To prove their case, the decoration contractor must present evidence of the change confirmation and the owner’s breach of contract. In practice, "insufficient labor resources and parallel project management" are the main causes of delays and do not constitute valid grounds for an extension. The legal basis for liability lies in the contractual provisions on the construction period and the records of project acceptance milestones. Second Level: Claiming Liquidated Damages If the contract specifies liquidated damages (commonly set at 0.01% to 0.03% of the contract amount per day or a fixed daily amount), the contractor must claim according to the agreed terms, starting from the day after the scheduled completion date until the actual completion or termination of the contract. If the amount is excessive, the contractor may request a reduction (based on actual losses). Without a contractual penalty clause, the contractor can claim actual damages—including rental losses (expenses for overdue rent), temporary accommodation costs, and material waste—with supporting leases and payment records. When combining liquidated damages with actual losses, prioritize the latter to avoid disputes over settlement. Third Level: Termination and Compensation For severe delays (exceeding reasonable grace periods or repeated unsuccessful reminders) or clear inability to complete the project, the contractor may terminate the contract—sending a written notice of termination with clear grounds and deadlines. Completed work will be settled based on actual costs. For alternative performance losses, the contractor can claim the price difference for remaining work, rental losses during the suspension, and material waste, all against the original company. Before termination, secure records of completed work (photos + third-party assessments if necessary) to avoid disputes over settlement. Fourth Level: Management and Evidence Link payment schedules to progress—strictly pay according to contractual milestones (startup, electrical inspections, carpentry, completion). Refuse subsequent payments if progress falls short. Use "braking mechanisms" (payment holds) more effectively than reminders. Keep written records of every communication (WeChat confirmations + physical letters for critical matters) and regularly document progress with dated photos. For add-on changes, always obtain written signatures. Oral additions are both cost traps and schedule pitfalls. In our firm’s decoration dispute cases, successful claimants share commonalities: strict adherence to payment deadlines, written confirmation of changes, and documented reminders—evidence management is key throughout the process, with litigation serving as the final step.

IV. Practical suggestions and legal basis

The first step is to issue a notice: demand completion of the project within a specified timeframe and declare the right to claim compensation; the second step is to calculate the penalty fee: starting from the date specified in the contract or claiming compensation based on the actual losses; the third step is to determine the next step: if the delay is serious, the contract can be terminated, and the loss of the difference in rent can also be claimed; the fourth step is to control payments: if the progress does not meet the standards, the next installment of payment will not be made. The main legal basis: Articles 563, 577, 585, 780, 803 and 804 of the Civil Code of the People's Republic of China; the specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Advice

Three key points for decoration claims: Written reminders are the preliminary step for claiming compensation; ten verbal reminders are not as effective as a formal letter; the breach of contract penalty starts from the day of default, and unspecified rental losses can still be compensated; pay at key milestones and document all changes to avoid future disputes. Those involved in decoration disputes can seek legal assistance through the following channels:Real estate transactions and construction projectsThe service obtains a comprehensive solution, which involves the combination of contract termination and compensationBusiness and contract disputes in enterprisesFor the plates, those who are interested in the losses from renting can refer to it for reference.Creditor's rights and debts, and enforcementFor the column involving the preservation of evidence, you can consult us for adviceSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: Can I claim compensation if there's no penalty clause in the contract?

Yes. Claim based on actual losses—the rent for overdue housing and the loss of the price difference of the completed substitute project. Submit claims with supporting documents; the amount claimed should be directly linked to the evidence of losses.

Q2: The decoration company said it's my fault for changing the design. What should I do?

To determine whether the change will extend the construction period, we need to refer to the written confirmation and the record of the construction period adjustment. Reasonable changes that have been confirmed in writing can extend the construction period, but oral claims cannot be used as an excuse for delaying the project.

Q3: Can I change companies halfway through the renovation?

Yes. If repeated reminders fail to produce results or there is a serious delay, the contract can be terminated. The completed work shall be settled according to the actual amount, and the remaining work shall be assigned to others. The company can claim compensation for the price difference from the original company.

Q4: Can we withhold the final payment and not pay it?

When the progress does not meet the standards, the contractor may refuse to pay the node payment as a check and balance, but the balance payment after the completion and acceptance of the project should be paid; if the contractor maliciously defaults on the balance payment, he/she will be accused of breaching the contract instead.

Q5: Who will pay the rent if the construction period is delayed by half a year?

The tenant can claim compensation for the rental losses caused by the decoration company's breach of contract and exceeding the time limit, which shall be determined based on the lease contract and payment receipts; if the agreed penalty covers the losses, the compensation shall be calculated based on the penalty amount.

The above answer is based on the judicial practice in Beijing. The judicial interpretations in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for the purchase and sale of real estate·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 a dispute arises, please consult a practicing lawyer in time.