Why construction projects are delayed and when contractors can claim for these delays.
Often construction projects are delayed. Sometimes the delay is due to the contractor – for instance poor planning, insufficient resources, or materials arriving late. Often the delay is due to weather which might include rain, wind and extreme temperatures, but weather events are normal and should be accounted for by the contractor. On occasion the delay is due to reasons that were specified in the contract document – such as the contractor having to work in and around the customer’s activities. Many times in this case the contractor has to recover the lost time at their own expense, as they either caused the delay themselves or they should have foreseen or known about the potential delays when they prepared and agreed to the project’s construction schedule.
However, delays often happen for reasons outside the control of the contractor, that couldn’t have been reasonably anticipated or allowed for by the contractor. In these cases, and depending on the terms of the project’s contract, the contractor will need to claim an extension of time so that the project’s completion date is extended. Delays invariably result in the contractor incurring additional costs as they remain longer on the project. Finishing a project late may entitle the customer to claim damages from the contractor. Furthermore, finishing a project late without a valid, approved reason can be damaging to the contractor’s reputation.
It’s therefore essential that contractors understand some of the reasons and causes that give them the right to claim an extension of time. An extension of time means that the project’s completion date is extended by the number of days approved in the claim. The contractor then can claim the additional costs associated with this longer approved construction period.
Reasons for extension of time
Some causes of project delays that entitle the contractor to submit an extension of time include:
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© 2016 This article is not to be reproduced for commercial purposes without written permission from the author.
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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