Risk Management for multi-family rehab project

[Robert Bracken]

Hi everyone, 

I just officially made an account (though I've read my posts over the past 18 months), so I am definitely newer to the game. My question is regarding how to best manage my risk during a large renovation that is about to commence on a four-unit multifamily property, in Washington, DC.

Background:

I recently purchased a four-unit property (through NACA), in Washington, DC. Currently, two of the four-units are vacant, and the core plan is to do a full demo of the other two units - I will then live in one unit, and rent out the other (in addition to the current units that are occupied). The project size is relatively large $200,000 - $300,000, and I have been allocated PITI-free phase, so the mortgage payments will not start until July. The project is set to start in the next two weeks.

Question: 

How can I best manage the risk throughout the project, specifically with respect to project timeline? 

My best guess:

My initial thoughts are to are place a Liquidated Damages Clause in my contractor agreement where the cost of each day of delay would be the lost rent per day plus the mortgage cost per day ( if the project goes past the PITI-free period).

Additionally, I was thinking of getting a builders risk policy, however I don't think those kinds of policies will cover project timeline issues?

Thanks!