To me it would depend on what was the cause of the delay. I've had to wait months for parts for example (I just ordered something this week and only after it went through did they note it was back ordered..), and it seems unreasonable to hold people to a schedule when there were outside supplier issues.
I would of course make sure to visit regularly to see that work is being done and they aren't trashing on some other persons car while yours sits around.
I personally do all my own work at a very slow pace so nothing other than my own work ethic delays my project but I like the idea of, if there is a strict deadline set, having the cost go down.
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