All too often, construction projects are finished late. Usually, the contractor is blamed. Contractors inevitably lose money because they are on the project longer than they planned to be. In addition, they are often penalised by the client for finishing late. But, is it always the contractor’s fault?
Many of the delays experienced on a construction project are due to circumstances beyond the contractor’s control, which means that the contractor could have claimed an extension of time, usually including the additional costs that they incurred as a result of the delay. So why don’t contractors claim for these delays?
Unfortunately, contractors often fail to submit delay claims because:
Contractors must learn to be more focused on the contractual issues as well as the construction work. Those who don’t understand their contractual rights will run into trouble, costing them money which could ultimately sink their company. The contract document is there to protect the client’s rights as well as the contractor’s rights, and no client can object to a contractor’s legitimate delay claim. Indeed, in the course of my career, I’ve been involved in over 120 projects for a multitude of different clients and many of these projects have involved variation and delay claims. Almost every one of these claims was settled amicably, even though some involved substantial increases to both the value and the time of the project. In nearly every case we went on to do further projects with the client.
Of course, it is important that every delay claim is backed up by sound logic and information.
Regrettably, some contractors only focus on submitting claims, often claims which are only desperate attempts to claw back time and money that has been lost due to their own mistakes. Many of these claims have no sound basis and are a waste of the contractor’s and the client’s time. In my next article, I’ll discuss some reasons the contractor can’t claim a delay for.
When Can Contractors Claim for Additional Time?
Contractors can claim for additional time when:
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Copyright 2016 - The attached articles cannot be reproduced for commercial purposes without the consent of the author.
The opinions expressed in the attached articles are those of the writer. It should be noted that projects are varied and different laws and restrictions apply which depend on the location of the contractor and the project. It's important that the reader uses the supplied information taking cognisance of their particular circumstances. The writer assumes no responsibility or liability for any loss of any kind arising from the reader using the information or advice contained herein.
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