Delays in major construction projects can cause friction between professionals and their clients. The estimated timeline for the project, in addition to the estimates for the overall cost, can play a major role in the process of selecting the company that does the work.
If the construction firm then fails to adhere to the promised schedule, a deadline extension can have significant implications for the client. In some cases, protracted construction delays may lead to construction litigation as clients seek to claim damages for the economic consequences of lengthy project delays.
Why delays can prove costly
Generally speaking, both wages and prices for goods slowly appreciate over time. Therefore, delays in large construction projects can result in budgetary shortfalls as the costs of skilled services and materials increase from quarter to quarter.
Additionally, delays in project completion can trigger a host of secondary expenses. Businesses may have to wait months before they can open their premises and begin conducting business as normal. Residential clients may have to pay for alternate housing for months.
Typically, construction firms taking on significant projects integrate terms related to unforeseeable delays into the contract. Clauses acknowledging that delays could occur can help limit their liability in the event of uncontrollable circumstances, such as supply chain disruptions, causing substantial delays.
The company may not be able to control the issues that cause delays in the proposed timeline for the project. Most of the time, prompt communication with the client about the cause of the delay and the estimated impact on the timeline for the project is crucial.
Ensuring that clients are aware of changing circumstances and integrating proper protections into contracts can help limit the risk of construction litigation. Business leaders facing financial claims due to project delays may need help protecting their company’s reputations and finances when responding to construction-related lawsuits that do arise, and that’s okay.
