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What Roofing Contractors Need to Know About Delay Claims Time:2022/01/12 17:13:00 Hit:394

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By Cotney Attorneys & Consultants.


Everything you need to know about delay claims, from what they are to how to resolve them. 

While not all delays in construction projects will lead to it not finishing on time, failing to handle it well can lead to even more delays. These can often have negative consequences, but if you file a claim there is a chance of recovering what you lost. Here’s what you should know about the types of delay claims and how to best resolve them.


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.


Resolving 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.





Original article source: Cotney Attorneys & Consultants


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.