Compensable, Critical, And Excusable Construction Delays
In the construction industry, it’s common for a contractor to take the time to anticipate any unplanned delays in a project before they begin. As construction attorneys in Orlando, we understand the importance of contractors, as well as subcontractors, suppliers, and developers, having a smooth and unruffled project course. Any unforeseen construction delays can result in disputes between the parties, litigation or arbitration, and a potential loss of a business relationship. It’s recommended that contractors that are dealing with compensable, critical, and excusable construction delays contact a local construction law firm that has experience dealing with construction delays.
In this article we will be discussing compensable, critical, and excusable construction delays. As construction lawyers in Orlando, we know that a contractor is obligated to take on any delay costs for a construction project, unless they are able to prove that:
- The delay is compensable
- The delay is critical
- The delay is excusable
When it comes to compensable delays, in most cases they will be defined in the contract. Compensable delays are typically known as “No damages for delay” clauses, and with this the contractor has the ability to be compensated for a particular delay cost, depending on the circumstances.
When the delay does not influence the project being completed in a timely manner, it is not a critical delay, and consequently it is not a delay cost that results in the contractor getting reimbursed.
In the construction world, excusable delays consist of any delays that are unforeseeable, and fall beyond the contractor’s control. A few examples of excusable delays can range anywhere from severe weather, design changes requested by the owner, or labor union strikes. On the other hand, if a delay is found to be non-excusable, it is something that was foreseeable and within the control of the contractor. Inexcusable delays can be anything that the contractor could have prevented, such as a lack of proper equipment, a lack of needed materials, or failing to schedule workers properly.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.