Delays happen on nearly every construction project, often despite your best efforts to stay on schedule. But experiencing delays don’t mean your business has to pay for all the extra costs.
When delays occur through no fault of your company, you have options to recover damages through construction delay claims instead of watching your profits disappear.
Key types of construction delays
Before filing a claim, you need to know what type of delay affected your project. This will guide you on whether pursuing a claim is worth your time and money. Knowing which category your delay falls into helps determine if you have a strong and worthwhile case.
Construction delays generally fall into three main categories:
- Critical vs. noncritical delays: Critical delays push back your finish date while noncritical delays only slow down certain tasks without extending the whole project.
- Excusable vs. inexcusable delays: Excusable delays come from things you can’t control like bad weather or owner changes while inexcusable delays happen because of your own mistakes.
- Compensable vs. noncompensable delays: Compensable delays allow you to get both extra time and money while noncompensable delays only give you more time without any money.
It’s worth filing construction delay claims if the delay significantly affects your business. The ideal claims to pursue involve critical, excusable and compensable delays.
Recoverable damages for contractors
If someone else caused the delay, you may have a claim for different types of financial losses. These include:
- Daily overhead costs: These make up your biggest loss, covering job supervisors, temporary offices, equipment rentals and office costs
- Material price increases: Additional costs when prices go up between your bid date and actual work date
- Lost productivity: Covers the extra cost when you rush work, do it out of order or work through bad weather
- Unused equipment charges: If equipment sits unused during delays but you can’t use it on other jobs
- Lost profit opportunities: These damages apply if the delay stopped you from taking other jobs
- Acceleration costs: Covers expenses from rushing work to still finish on time
These damages can add up to significant amounts, especially on larger projects or longer delays.
Laying a solid foundation for your claims
Filing construction delay claims help protect your business from money problems caused by others. Your claim’s success depends on your contract wording and strong proof or documentation of how the delays cost you money.
Working with an experienced construction attorney helps you ensure filing a claim makes financial sense. Legal helps you meet all deadlines, properly document everything and present your case in the strongest possible way.
