The construction business is a complex field. Aside from meeting your client’s demands, having a cost-effective management strategy helps generate profits. However, there will always be unforeseen events that could cause delays, affecting your construction project’s timeline and budget.
Construction delays can cause disputes between the contractor and the client when not accounted for. A well-established contract not only includes a clause for completion milestones but also includes delays.
Common causes of construction delays
A contractor could run into various challenges throughout the project’s life that cause delays. You can classify these challenges into two categories—excusable and non-excusable. When the contractor has no control over the event, such as natural calamities, client’s decisions or escalation of prices, these delays are considered excusable. The client compensates for excusable delays, usually through extending the timeline or increasing the budget. On the other hand, delays caused by foreseen events, such as document submission for government permits, supply procurement or scheduling, are considered non-excusable. In this case, the contractor is liable for the delay damage.
Include delays in the construction contract
You can be proactive and prevent complicated construction disputes by clearly stating delay clauses in the contract to help align the expectations for both the contractor and the client. Additionally, it may be wise to include the types of delays and the processes of managing them. You can also specify who would be liable for specific delays and how the parties would address disputes arising from it. Seeking the guidance of legal professionals could ensure that your construction contracts protect you and your client.
