Ugovorna kazna raste u mjeri u kojoj radovi kasne.

Ugovorna kazna is a noun phrase made of:

• kazna = penalty, fine
• ugovorna = contractual, contract-based

The adjective ugovorna comes from ugovor (contract) and agrees with kazna in:

• gender: feminine
• number: singular
• case: nominative

So ugovorna kazna literally has the structure contractual penalty.

A native English speaker may expect something more like penalty of the contract, but Croatian often prefers an adjective where English might use a noun modifier.

Croatian has no articles, so there is no direct equivalent of the or a/an.

That means:

• ugovorna kazna can mean the contractual penalty or a contractual penalty
• radovi can mean the works or just works

Which meaning is intended depends on context. In legal or contract language, these are often understood as definite because the contract has already established what penalty and what works are being discussed.

Raste is the 3rd person singular present tense of rasti = to grow, to increase.

It is singular because the subject is ugovorna kazna, which is singular.

So the agreement is:

• ugovorna kazna = singular subject
• raste = singular verb

In this sentence, rasti is used in the sense of increase rather than physically grow.

This is a formal expression meaning roughly:

• to the extent to which
• in proportion to how much
• insofar as

It is common in formal, legal, and administrative Croatian.

The structure is:

• u mjeri = to the extent / in the measure
• u kojoj = in which / to which extent

So the sentence says that the penalty increases in proportion to the degree of delay.

This is not usually something learners should translate word-for-word. It is better to learn it as a set phrase used in formal language.

Both are in the locative singular feminine.

1. mjeri

This comes from mjera = measure, extent.

After u, Croatian can use the locative when expressing location or an abstract frame such as u mjeri.

So:

• mjera → mjeri

2. kojoj

This comes from the relative pronoun koja / koji / koje.

It is:

• feminine singular because it refers back to mjera
• locative because it follows u

So:

• u mjeri u kojoj literally has the grammar of in the measure in which

Even though that literal breakdown is possible, the whole phrase functions idiomatically as to the extent that.

In Croatian, especially in construction, engineering, and legal contexts, radovi often means:

• works
• construction works
• project works
• the work being carried out

English often uses work as an uncountable noun, but Croatian very often uses the plural radovi in this kind of context.

So in a contract, radovi is very natural and standard.

Compare:

• rad = work, labor, a piece of work
• radovi = works, especially construction or contractual works

Because the subject is radovi, which is plural.

So the agreement is:

• radovi = plural
• kasne = 3rd person plural present of kasniti

That is why you get:

• radovi kasne = the works are late / the works are delayed

If the subject were singular, you would have:

• rad kasni

Here the sentence uses kasne from kasniti, which is the better choice when talking about an ongoing state of delay.

kasniti

Usually means:

• to be late
• to run late
• to be delayed

It emphasizes the state or continuing situation.

zakasniti

Usually means:

• to arrive late
• to miss the proper time
• to be late on a specific occasion

It often sounds more completed or punctual.

In a sentence about construction works being behind schedule, kasniti is the normal verb because the delay is an ongoing condition, not just a one-time event.

Yes, Croatian word order is flexible, but this version sounds neutral, formal, and legal.

Current order:

• Ugovorna kazna = topic/subject
• raste = main verb
• u mjeri u kojoj = formal proportional phrase
• radovi kasne = clause explaining the extent

You could rearrange parts, but in legal writing this order is very natural because it presents:

1. the legal consequence
2. the way it changes
3. the condition it depends on

So this wording sounds very much like contract language.

It is definitely formal and sounds like legal or contractual Croatian.

In everyday speech, people might use something more direct, for example a structure equivalent to:

• The more the works are delayed, the more the penalty increases.

The sentence you have is not wrong or unnatural at all; it is simply from a more official register.

That makes it useful to learn if you are reading:

• contracts
• regulations
• business documents
• legal texts

Yes, that is a very good way to understand it.

Even though Croatian uses the formal expression u mjeri u kojoj, the logic is basically:

• the more the works are delayed,
• the more the contractual penalty increases

So if that pattern helps you, it is a good shortcut for understanding the sentence structure.

Just remember that the Croatian sentence is more formal and abstract than a typical everyday the more..., the more... pattern in English.