TEN NEW YEAR’S RESOLUTIONS FOR CONTRACTORS-2021

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   As I sit down to write my annual list of resolutions for contractors, I am amazed at how much things changed in 2020. Construction was going well and then, in March 2020, COVID-19 hit. At first, we thought it was going to be a disaster for the construction industry. States, cities and towns shut down projects and many applied for PPP loans. Then, something amazing happened. Construction was considered an essential service and everyone was back to work.  That said, the work world changed: companies were donating their PPE to frontline workers, COVID-19 protocols had to be followed and paperwork had to be filed. Everyone was scrambling to figure out how to comply and keep their businesses going. So, you may or may not ask, what was I, as a construction lawyer doing? I spent March and April thinking about the new risks contractors/construction companies were facing and developing contract clauses to protect the industry. I wrote a number of blog posts with clauses to add to your contra

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.

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