In this study, the terms of penalty clause and liquidated damage have been examined in terms of construction contracts. Construction contracts are one of the most common types of work contracts. Especially with the continuous growth of the construction sector in the last decade, contractual relations in this area seem to be complicated. The greatest interest of the building owner in the construction contract is that the contractor will deliver the building to him in a timely fashion, in a timeless manner. In practice, however, it is fairly common for contractors to default on construction delivery. In order to prevent this situation and to take away the damages of the owner of the building, the contracts are provided with penal clause records or liquidated damages. However, there may be hesitations at the point where these records in the contracts are penal clause or liquidated damage compensation. Because the penalty clause is regulated in the Code of Obligations, it is not connected to any regulation in the liquidated damages. Since the conclusions of both concepts differ, they need to be distinguished from each other. First of all, in terms of clarity, construction contracts and the contractor's brief delivery are mentioned, followed by the concepts of criminal and contractual compensation and their characteristics.