Not every construction delay will cause a project to finish late, but a failure to mitigate a delay properly can lead to a domino effect of delays. Project delays can have serious financial consequences for contractors, but filing a claim can help you recover your losses. Read on to learn about the different types of construction delays claims and how to resolve delays.
Our construction attorneys are well acquainted with delay claims; do not hesitate to reach out to a roofing lawyer in Texas to get your project delay resolved promptly.
What Causes a Delay Claim?
Delay claims arise when a project delay occurs due to a contractor’s need for more time than originally budgeted to complete a project. Contractors can submit a delay claim requesting to extend the original deadline for completing a job or compensation for the additional costs (i.e., labor, overtime) caused by the delay.
The Type of Delay Matters
Construction delays fall into two general categories: excusable delays and inexcusable delays.
Excusable: Some delays, such as adverse weather, project spec errors, and delays in government approvals are considered excusable delays. This means that they are unavoidable and not caused by either party. Excusable compensable delays result in extra costs as a result of the delay. While excusable non-compensable delays qualify contractors for an extension of the performance period, they do not qualify the contractor for additional compensation.
Inexcusable: If a contractor experiences an avoidable delay, also known as an inexcusable delay, they can seek recovery of additional costs needed to complete the project. Many avoidable events can delay a project. Receiving defective materials from the supplier, having a delayed project start, or procuring project tools or equipment late, all qualify as inexcusable delays.
Delay claims can be time-consuming and expensive, especially if they are not resolved promptly. Before committing to the delay claims process, contractors should first consider resolving delay disputes informally before pursuing arbitration or litigation. If you decided to submit a claim, act fast as procrastination can increase the amount of time and money you will spend on preparing the claim. Not to mention that a contractor can inadvertently forfeit the right to a delay claim. Also, it is easy to forget the facts surrounding a claim due to personnel changes or keeping poor documentation.
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.