Under the terms of the contract, the delay could be considered excusable. For example, some delays may affect only one aspect of the project, and other aspects of the project may continue while the contractor corrects the delay. Other delays may result from a situation beyond the contractor`s control, such as unusual weather conditions or a government order preventing the project from proceeding. When a delay is excusable, it usually falls into one of two categories: In addition to the words “You can delay, but time won`t,” Benjamin Franklin also said, “Time is money.” While it`s doubtful that Ben thought about construction delays when he invented these phrases, his words are perfect. Delays during a construction project can have a serious negative impact on the bottom line for homeowners and contractors. Therefore, when drafting and negotiating construction contracts, care must be taken to ensure that the financial interests of the parties are adequately protected in the event that delays result in a late termination of the project. Given the serious financial impact that construction delays can have on the parties, owners and contractors must carefully negotiate the various temporal provisions of their contract. In addition to the provisions on time for performance and liquidated damages discussed above, the provisions “time is of the essence”, “no compensation for delay”, “waiver of consequential damages”, “acceleration” and “termination” should be carefully prepared, considered and negotiated by the parties. Perhaps the most important time provision in a construction contract is the “time is running out” clause.

In Colorado, the inclusion of this provision in a construction contract makes each of the other time clauses important to the contract. Kole v. Parker Yale Dev. Co., 536 pp. 2d 848 (Colo. App. 1975). Thus, if the construction contract does not contain a provision that time limit is essential, the other provisions relating to time and delay may be considered negligible and therefore unenforceable by either party. Conversely, inexcusable delays are delays caused by events under the control of the contractor. Examples of these types of delays include: delays caused by weather forecasts, poor planning by the contractor, inadequate staffing, poor monitoring, and delays in repairing the contractor`s defective work. Depending on the specific terms of the construction contract, these delays are often compensable to the owner through the payment of liquidated damages or actual damages by the contractor. Some contracts include conditions that define compensable and non-compensable delays, and it may be important for contractors to review these terms before undertaking a project.

So if at the beginning of the project, a contractor (a) intended to complete the contract earlier than planned, (b) could do so, and (c) would have been ready ahead of schedule, but – for the owner`s actions – they could still have a valid claim for delay! Justifiable delays are delays that are unpredictable and beyond the contractor`s control. Inexcusable delays are delays that are foreseeable or for which the contractor is responsible. Obviously, the difference between the two is important in that it determines which party is responsible for the delay. Similarly, it also determines whether or not a contractor is entitled to an extension of time and whether it might be entitled to compensation for that extension. A simultaneous delay occurs when multiple activities affect the project schedule, but the delays are not accurately stacked on top of each other. This does not necessarily mean that delays have to occur at exactly the same time to be considered simultaneous. Simultaneous delays occur when both parties assume some responsibility for construction delays or when there are multiple delays that occur during the same period. Since both parties are at fault, most courts find that neither party is entitled to financial compensation. However, in these circumstances, most courts will add time for the project to be completed. The success or failure of a commercial construction project depends largely on the construction schedule and whether that schedule is adhered to. Delays in the construction schedule negatively affect homeowners and contractors.

Delays cause owners to absorb additional costs by not being able or unable to use their property for its intended purpose. Delays negatively impact contractors by increasing construction costs resulting from the need to pay for labor and/or equipment that sit idly by during the delay. In addition, contractors may experience price increases for building materials and fuels during the delay, resulting in increased overhead and general conditions. Given the serious financial impact that construction delays can have on owners and contractors, it shouldn`t come as a surprise to anyone working in the construction industry that delays in completing a construction project are a major source of litigation, claims, and litigation. Resolving a dispute often requires a careful legal strategy. When contractors experience construction delays, it may be imperative to speak to a lawyer about these issues and whether their clients might consider them inexcusable given the terms of the contract. The applicability of these clauses varies by jurisdiction. Most states have banned or at least restricted these regulations — so make sure you know how your state handles them. While a non-indemnity clause for default is permitted, there are still certain exceptions to enforceability. Delays are inexcusable when the contractor was fully responsible for extending the duration of the project.

If this is the case, the Contractor shall be liable for all costs or damages caused by the delay. This may be due to late mobilization, late bidding, inability to obtain a permit (if they are responsible for it), or poor overall planning on the part of the contractor. Attention: If the parties decide to include a contractual penalty in their construction contract, the owner must ensure that the amount of lump sum damages is reasonable and not generally disproportionate to the actual loss or damage to be suffered in the event of delay. Otherwise, a court may declare the penalty clause void as an unenforceable sanction. Rohauer v. Little, 736 p.2d 403 (colo. 1987). However, in such a case, the owner may still be entitled to compensation for his actual demonstrable damage resulting from the delay. What for? Because these delays are beyond the control of the contractor.

The usual excusable delays must be described in your contract. The most natural example of justifiable delays is when a delay falls under a force majeure clause – events such as natural disasters or terrorist attacks. Excusable delays can also be caused by errors or omissions in plans, or even simple problems caused by the client. Construction delays are among the most common disputes that arise in projects.