Tuesday, August 18, 2009

Preserving Your Delay Claim

This is a good post about delay claims in construction projects.

http://www.constructionlawnews.com/BlogEntry.aspx?_entry=bbfe04e2-2bcb-40ab-ae71-00e6dd4418ef&RSS=true

Delay claims are very real, and unfortunately, in my experience, contractors sign contracts that prohibit delay claims without even realizing what they are signing.

I had a client who claimed that the foreman on his project was causing delays, and as a result, his men were forced to stay idle. He became so frustrated, he pulled his men and equipment from the site. Delay claims were forbidden in the contract. Disaster ensued.

So, first make sure you can even bring a claim for damages for delay.

Second, document the delay as it is happening and try to work things out with the General Contractor or Owner in order to limit the effects of the delay as much as possible. Be sure to negotiate a new schedule for completion if delays occur.

Third. Document your damages as a result of the delay, including extra overhead and rental fees as well as the opportunity costs of being prevented from starting or pursuing other jobs.

Delay damages are real and can literally put a company out of business. Sign your rights to pursue them away at your peril.