Delayed Construction Claims

How do delayed construction claims affect construction companies?

Claims of delayed construction often arise where there are unforeseen circumstances or disruptions that prolong the completion of a construction project beyond the agreed-upon timeline. Such claims can lead to a cascade of challenges for construction companies, affecting their operations and finances.

In addition to operational and financial implications, delayed construction claims can also strain relationships between construction companies and other involved parties. For example, disputes may arise over the responsibility for delays and may result in reputational harm.

Furthermore, delays and related claims can disrupt project schedules, causing ripple effects on other ongoing or planned projects. This can create a domino effect, impacting the overall productivity and efficiency of the construction company. However, by adopting proactive strategies and effective risk management practices, construction companies can minimize the impact of delays, safeguarding their finances, relationships, and overall business operations.

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In Florida, which laws and regulations apply to delayed construction claims?

In Florida, several laws and regulations apply to delayed construction claims. First and foremost, contract law principles govern contractual agreements and the effect of project schedules, force majeure provisions, agreed-upon remedies for delays, and other contract provisions.

Additionally, Florida Building Construction Standards, including the Florida Building Code, provide standards for construction practices, and failure to comply with these standards, or with permitting requirements, may result in project delays and related construction claims.

What are common issues regarding delayed construction that lead to litigation?

The following issues are among the most common in actions regarding delayed construction:

• Unforeseen Site Conditions: When construction begins, unforeseen site conditions, such as soil instability or hidden underground utilities, may emerge. These conditions can lead to delays as additional work or redesigns are necessary, often triggering disputes over responsibility and compensation.
• Supply Chain Disruptions: Delays in the delivery of materials or equipment can significantly impact construction schedules. Disputes may arise between contractors, subcontractors, and suppliers regarding the causes of supply chain disruptions and the resulting project delays.
• Design Errors or Changes: Inaccurate or incomplete project designs, as well as changes requested during the construction process, can lead to delays. Disputes may occur over the responsibility for design errors, the approval process for changes, and the resulting schedule impacts.
• Weather Conditions: Adverse weather conditions, such as hurricanes, heavy rain, or extreme heat, can impede construction progress and cause delays. Disputes may arise over the interpretation of contract provisions related to weather delays and the allocation of associated costs.
• Contractual Disputes: Conflicts over contract terms, payment disputes, scope changes, or project modifications can escalate into delayed construction claims. Resolving these disputes often requires careful interpretation of contract provisions and negotiation between parties.
• Labor Issues: Shortages of skilled labor, labor disputes, or workforce inefficiencies can contribute to project delays and result in related construction claims.

We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation, please contact our office to set up your initial consultation.

What steps should businesses take to minimize the risk of litigation over delayed construction?

To minimize the risk of litigation over delayed construction, businesses can implement the following strategies:

• Comprehensive Contractual Agreements: Draft clear and detailed contracts that outline project timelines, responsibilities, dispute resolution mechanisms, and procedures for addressing delays. Include provisions for documenting delays, notifying stakeholders, and mitigating impacts.
• Effective Project Management: Implement robust project management practices, including regular progress monitoring, risk assessment, and proactive issue resolution. Establish communication channels to address concerns promptly and prevent disputes from escalating.
• Preventive Risk Assessment: Conduct thorough risk assessments before commencing projects to identify potential sources of delays and mitigate associated risks. Anticipate site conditions, supply chain challenges, and other factors that may impact construction schedules.
• Collaborative Approach: Foster collaborative relationships with clients, subcontractors, suppliers, and other project stakeholders. Encourage open communication, transparency, and cooperation to address issues collectively and minimize conflicts.
• Adherence to Regulations: Ensure compliance with relevant building codes, regulations, and permitting requirements to avoid delays resulting from non-compliance or regulatory issues. Stay informed about changes in legal requirements that may impact construction projects.
• Document Management: Maintain accurate and detailed project documentation, including records of communications, change orders, delays, and approvals. Documenting events and decisions can provide evidence to support claims or defenses where litigation arises.

Frequently Asked Questions

Can a contractor be held liable for delays caused by subcontractors?

Yes, depending on the relevant contract terms and the specific circumstances of the delay, a contractor may be held liable for delays caused by subcontractors. It is essential for contractors to carefully manage subcontractor relationships and include provisions in contracts that address subcontractor performance and accountability for delays.

How can force majeure clauses in contracts impact delayed construction claims?

Force majeure clauses may excuse parties from performing certain contractual obligations, potentially including strict adherence to project timelines, in the event of unforeseen circumstances beyond their control, such as natural disasters, acts of God, or government actions. These clauses can affect delayed construction claims by determining whether delays caused by force majeure events are compensable or excusable under the contract.

What are liquidated damages, and how do they relate to delayed construction claims?

Liquidated damages are pre-determined amounts specified in a contract as compensation for certain events, sometimes including delays in project completion. These damages serve as a form of incentive for contractors to meet project deadlines and can provide a predetermined remedy in case of delays. However, disputes may arise over the enforceability and applicability of liquidated damages provisions in delayed construction claims.

Have more questions about a situation related to delayed construction claims?

Crucially, this overview of delayed construction claims does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.