Time is Money: Construction Contract Times, Delays, and Schedules-Time is Money Construction Contract Times Delays Schedules HO5 Delays

Time is Money Construction Contract Times Delays Schedules HO5 Delays

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The article "Delays in Construction: A Common Source of Claims" by Kevin O’Beirne, PE, discusses the types, risk allocation, and claim considerations regarding construction delays. Delays are a frequent cause of change orders and claims, generally categorized into delays within the contractor’s control, within the owner’s control, and those beyond either party's control (force majeure).<br /><br />Contractor-controlled delays stem from their own actions, subcontractors, or suppliers, often resulting in no entitlement to time extensions or compensation and potential liability for damages. Owner-controlled delays arise from owner-ordered changes, acts by the owner’s agents or consultants, and differing site conditions, usually entitling contractors to time extensions and added costs such as extended equipment rental and overhead. Force majeure delays include natural disasters, abnormal weather, labor disputes not involving the contractor, and similar uncontrollable events. The allocation of risk for these varies by contract form: some allow contractors additional time and compensation, others only time extensions, and some deny compensation.<br /><br />Standard contract documents like AIA A201, EJCDC C-700, DBIA 535, and ConsensusDocs 200 address delay clauses, while MasterFormat does not specify delay sections directly. The article cautions against modifying established risk allocations without considering the impact on contract pricing.<br /><br />“No damages for delay” clauses are noted as controversial provisions that limit contractor compensation for owner-caused delays but often face legal challenges. Concurrent delays, where delays from both owner and contractor overlap, pose complex allocation issues. Most courts favor owner-caused delays in such cases, granting contractors additional time and compensation for owner delays despite concurrent contractor-caused schedule slippage. EJCDC uniquely limits compensation for concurrent delays attributable to the contractor while granting time extensions for owner delays.<br /><br />For delay claims, clear identification of delay type, responsibility, duration, and documented extra costs is critical. Proper contract enforcement and documentation are essential to resolving these often contentious claims. Understanding delay categories, risk allocation, and related contract provisions helps owners, contractors, and administrators manage and resolve delay issues effectively.

Keywords

construction delays

risk allocation

contractor-controlled delays

owner-controlled delays

force majeure delays

change orders

delay claims

contract provisions

no damages for delay clauses

concurrent delays