Unfortunately, construction project delays are part of the construction business. As Sarasota construction attorneys, we are here to provide you with any legal advice you may need regarding your contract and how it interprets your compensation during project delays. If you are a construction industry professional, please remember to carefully read your contract and challenge any vague language in your contract before agreeing to it. If you have a dispute with an article in your contract or would prefer to have a Sarasota construction attorney review your contract, please contact our law firm today.
In this three-section article, we first covered the negative impact project delays have on both parties: the contractor and the owner. In the second section, we discussed ways for contractors to avoid bad contracts regarding excused delays. In the final section, we will discuss some more points to focus on when agreeing to a contract with an owner.
The following two conditions should be met by the owner when you agree to a contract.
Increased Pricing During Delays
When negotiating a contract before the project begins, the contractor and the owner should mutually agree on specific parameters that would result in increased pricing for delays. It’s important for the contractor to also provide the method they use to calculate these supplemental funds. Having the owner and contractor on the same page about these potential increased costs during delays will only provide a better working relationship for each party during the delay. Hopefully, this will also help avoid any financial disputes during the delay.
As we have stated before, delays happen for a variety of reasons and any party involved in a project could be at fault. However, if the owner is responsible for the delay, the contractor needs to make sure they are protected by their contract and compensated. Owners can create delays in a variety of ways. It’s important for a contractor to have stated in their contract what is defined as an owner-caused delay that results in the contractor seeking additional compensation.
The previous tips for negotiating a contract with an owner are all valuable factors to remember in case of a delay. However, hiring a Sarasota construction lawyer to review your contract and ensure you are protected can be indispensable.
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.