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Why construction timelines often lead to contract disputes

On Behalf of | Jun 3, 2021 | Business Law |

Creating an estimated timeline for a construction project is a difficult task. Anything from disruptions in the supply chain to unseasonable weather could mean extra days or weeks before the completion of a project.

Few things cause as much tension between contractors and clients or companies and subcontractors as when construction work does not align with the proposed schedule. The more significant the delays are, the more likely it is for a dispute to arise. Understanding why delays are so problematic can make it easier for you to respond to them appropriately.

Construction delays increase project costs

Delays don’t just mess with your schedule. They can also impact your budget. You may incur extra costs when construction doesn’t follow the schedule. Careful storage to prevent damage from weather may be necessary, as could more security measures.

Additionally, the price of materials could go up, requiring adjustments to the estimate or budget for the project. Sometimes, workers on the delayed project may have another project scheduled, forcing the company to bring in new professionals, sometimes at a higher cost due to the short notice.

Construction delays can impact clients negatively

Additional costs aren’t the only concern with construction delays. They can also cause logistical nightmares both for homeowners and people who run their own businesses.

A facility not being accessible to the public by a specific date might mean that a business loses out on revenue. If a project is a residential property, long delays in completion could mean a requirement to pay two mortgages at once if someone can’t move out of one property and into the new one.

Understanding how construction delays might affect clients can make it easier for companies to negotiate and resolve construction disputes when delays affect a project.