General

Legal guidance crucial in disruption and delay claims

Construction projects can be incredible undertakings, particularly when they are large, expensive or intrusive. In these situations, builders, developers and business owners are typically focused squarely on getting a job done on time and without going over their budget.

However, as any person who has been involved in construction, renovation or demolition could likely tell you, problems can and do happen and they can be costly. While they may all but inevitable, delays and disruptions could be foreseeable and are often addressed in a contract signed before the project begins.

Delay and disruption claims refer to situations in which work cannot be completed on time or in the manner established in a contract resulting in loss of productivity. The reason for these disruptions or delays in work can stem from factors including weather, site conditions, changes made by owners, incorrect plans or defective materials.

In these situations, there may be grounds to pursue compensation for the cost of losses of productivity and money. However, as discussed in this Construction Week Online article, these claims can be quite complicated. In addition to the traditional complexities of any legal matter, there can be issues with calculating losses and quantifying productivity disruption.

It is possible that an existing contract addresses how to resolve these types of issues and how productivity loss will be accounted for financially, but disruption and delays are not always predictable. Further, while a party may agree to accept responsibility for the cost of some interruptions in productivity, it may not be responsible for issues caused by factors it could not control like weather or third-party interference.

If you have questions or concerns about productivity loss stemming from a disruption or delay, you can discuss your legal options for pursuing compensation or challenging accountability with an attorney familiar with these specific types of claims.

Mon Aug 27, 4:00pm