The landlord is probably in breach of the contract (obviously I haven't read every word of it), and the usual remedy if there was a lawsuit would be the moving costs and increased rent you were obligated to pay as a result of the breach, plus attorneys' fees and costs (if any).
You might want to try to negotiate some concession from the landlord in the shadow of your legal rights, knowing that you don't have the staying power to actually litigate the issue which means you would probably have to take some concession from your rights for settlement purposes.
It would probably not be prudent to try to stay in light of the imminent construction, even if you have a legal right to do so. The conflict that would engender, the time consumed by litigation, and the reduced quality of your living experience wouldn't justify it.
At a minimum, no penalty should be charged and you should be released from any obligation under this lease.
Also, by all means, once you are out, disclose the bad treatment you received in social media.