In Part 1 of our article, we discussed the types of construction delays you may experience during the course of a project. In this second, part we’ll discuss some contract provisions used to address delays and ways to avoid delay disputes.
Drafting an ironclad contract with provisions addressing potential delays is vital. With any contract, we advise you to get expert legal counsel because just as a clause can prevent risks, it can also cause risk when it is not drafted properly. One of Clearwater construction lawyers can help you draft the proper provisions into a contract so you can avoid costly delay disputes. Clauses you should be familiar include:
- A no damages for delay clause will outline those situations in which a party can be excused from liability as a result of a delay
- Waiver of consequential damages is a mutual clause that is used to eliminate party liabilities to one another in response to direct damages as a result of project delays
- Termination clauses allow parties to end a contract for reasons set forth in the contract as a result of a delay
- Time is of the essence clause outlines the period of time a party should complete work in a project.
How to Avoid Delay Disputes
Prevention is one of the most important defenses to construction delay disputes. Fortunately, there are ways you can avoid construction delays. As with any project, changes can occur and it is vital to document all delays that occur throughout the entire project. Following are a few ways you can keep the project on track.
- To minimize friction, discuss potential changes that may occur beforehand. Evaluate how you will handle the inevitable so the project will not veer too far off track.
- Place all important correspondence and documents in one central location, this way it is can be easily found and everyone knows exactly what phase the project is in.
- Be sure to submit all necessary paperwork on time so that the project will move along as planned.
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.