How to handle construction project delays

On Behalf of | Aug 31, 2023 | Construction Law |

A construction project is a major undertaking that requires a lot of planning and preparation. Although you would love everything to go smoothly, sometimes problems occur that can delay your project and even jeopardize the project altogether.

There are many reasons for construction delays, including budget problems, construction defects, labor shortages, miscommunication, poor planning, or long wait times for getting necessary approvals or permits.

You cannot always prevent delays but there are steps you can take to help your project get back on schedule.

Give timely notice

Review your construction contract carefully. Many contracts have notice provisions, requiring you to provide notice to the owner of any delays within a certain time.

Provide this notice promptly and in writing. Explain the exact reason for the delay. If the delay extends the completion date for the project, proof that you provided the proper notice can help you avoid penalties for the late completion.

Check rental and permit agreements

Check any rental agreements in place for any rented equipment or materials. See if you can extend the rental agreements and the cost of doing so. Your project might get back on schedule and you may not ultimately need the extension, but it is better than having your rental contracts expire before the project is complete.

The same goes for any permits that you were issued for the construction project. Check the expiration dates on your permits and apply for an extension if necessary.

Suspension may be the best option

If it appears the delay is going to be longer than anticipated, or you are unsure when the issue will be resolved, suspension of the project might be the best option.

Before you decide to terminate, review any costs you must pay and determine how quickly you can begin construction again when the delay is resolved. This will help you decide if suspension or termination is the right call.