Construction Delay Claims: A Practical Guide to Managing Disputes

Delays are a common and costly challenge in construction projects, often leading to disputes between builders and employers. These construction delay claims usually fall into two key categories:

• Delay by the Builder – where the builder fails to complete work on time, causing financial loss to the employer.
• Delay by the Employer – where the employer’s actions or inactions cause project delays, resulting in loss to the builder.

Effectively resolving these construction disputes requires a clear understanding of the causes of delay and the implementation of proactive management strategies. In this guide, we outline a structured approach to handling construction delay disputes.

Understanding Construction Delay Claims

A construction delay occurs when a project or part of a project is not completed by the agreed date or within a reasonable timeframe as defined by the contract. While identifying that a delay has occurred is usually straightforward, understanding the underlying cause is more complex and often the key to resolving the issue.

Construction projects involve a wide range of logistical challenges for both the builder and the employer. These include timely delivery of materials, access to the site, coordination of labour, and design completion. Delays may also be caused by external factors such as adverse weather conditions or third-party disruptions.

Most construction contracts outline responsibility for different types of delays. This typically results in one of three outcomes:

• The builder is at fault, making them liable for damages to the employer.
• Neither party is at fault, in which case the builder may be granted more time to complete the work without compensation.
• The employer is at fault, entitling the builder to both an extension of time and possible compensation for associated losses.

Proactive Steps to Minimise Delay Disputes

To reduce the risk of construction delays and the resulting claims, it's important to adopt a proactive approach to project management. By closely monitoring project progress, you can identify potential delays early and take corrective action before they escalate.

Most construction contracts include clauses that require immediate notification of any delays. For this reason, contemporaneous documentation is essential. Keeping clear and dated records – for example, noting when instructions were delayed by the employer or when materials were delivered late by the builder – can be critical in supporting or defending a delay claim. Failure to maintain this documentation may lead to the loss of a valid claim, even when the delay was not your fault.

How to Resolve a Construction Delay Claim

Successfully resolving a construction delay dispute requires strict adherence to the contract and timely communication. Providing formal notice of delay in accordance with the contract is essential, and this is an area where a legal professional can offer valuable support.

Proper preparation is key. Collect all relevant documents, keep detailed records, and ensure you understand the link between the cause of the delay and the losses suffered – especially if you are seeking compensation.

Although preparing this documentation can involve upfront costs, it is often significantly less expensive than a drawn-out dispute.

When a dispute cannot be resolved informally, the following resolution methods are available:

• Adjudication, if contractually provided, offers a swift resolution mechanism.
• Arbitration, another contractual option that provides a structured process for resolution.
• Litigation, though a last resort due to costs and time, remains a viable option for achieving settlements.

Summary

While identifying a construction delay may be simple, understanding its cause and impact is far more complex. With the right approach to delay management, including proactive project oversight and clear documentation, many disputes can be prevented or resolved more efficiently.

Effective construction delay claim management not only reduces financial risk but also helps protect project timelines and maintain professional relationships between builders and employers.

Get in touch

If you're dealing with a construction delay or need advice on managing a delay claim, contact Andrew Cullyer and our Construction Litigation team on 023 8063 9311 or email enquiries@warnergoodman.co.uk.