Most construction projects have deadlines. From an owner’s perspective, he or she wants to ensure that the project is delivered on a timely basis so that profits or rental income can be realized as soon as possible.  Owners also want to limit the amount of interest paid on interim loans.  A contractor wants to limit the amount of time spent on a project to keep his or her overhead costs to a minimum.  The reality for a contractor is that any unnecessary days spent on a job site increase expenses and thus reduces profit.

Construction contracts typically contain a provision for delay penalties.  This will allow the owner to collect from the contractor an agreed-upon amount for every day that the project is delayed through no fault of the owner.  Contractors often argue, however, that delays are borne by the owner in the form of change orders or modifications made during the course of construction.

Irrespective of who is responsible for delays in construction, the reality is that a delayed project will result in increased costs or loss of revenue for the parties.  When you or your company is faced with a delay penalty claim contact the Law Office of Ryan C. Solis to schedule a consultation regarding how best to handle your claim.