Construction Delays: Breaking Down the Definitions, Claims, and Mitigation Strategies

With the size and complexity of new projects increasing constantly, there are endless factors that can lead to construction delays. Strategies have evolved to plan for the inevitable, but it is also important to reduce avoidable delays through a combination of commonsense practices and construction software solutions. Keep reading to learn everything about it!

What are Construction Delays?

Construction delays are extensions or interruptions in project schedules that prevent work from being completed on time. Project delays can be caused by a wide variety of factors, including weather, material shortages, and disputes between stakeholders and workers.

Delays are almost inevitable, with over 87% of construction projects experiencing a delay or cost overrun of some duration. While many delays are caused by uncontrollable forces and no one is to blame, there can still be significant financial and legal fallout when planned deadlines and budgets are not successfully met.

Top Reasons for Construction Delays

Weather events, natural disasters, vandalism, and other unforeseen issues can certainly lead to project schedule setbacks, but many types of construction delays are directly attributable to either the contractor or the client. This is an important distinction since the potential for financial repercussions often boils down to accountability. Delays that are usually caused by the contractor include:

• Rework based on drawing misinterpretation and mistakes
• Safety violations or accidents that halt work for investigations
• Inadequate resource planning leads to material or labor shortages
• Communication lags between independent teams on the job site
• Subcontractor delays caused by poor vetting or tracking processes

Obviously, contractor delays are not always to blame. Sometimes, a client will make decisions or initiate changes that significantly impact the schedule. Examples of delays caused by clients include:

• Late design changes requiring rework or additional resources
• Slow approvals for contract document updates or construction contingencies
• Contract disputes that lead to work stoppages
• Delays in funding or agreed-upon payments to contractors and suppliers
• Unanticipated site access issues based on environmental regulations or zoning

Types of Construction Delays

Construction project delays are so common that classification systems have evolved to characterize each claim and assess the impact. The logic used to classify delays follows a series of three tiers that filter into assignable categories.

Critical vs. non-critical

A critical delay directly impacts the project completion date and cannot be recovered. One example is a failure to obtain necessary permits, which pushes out the project start date by several months.

By contrast, a non-critical delay impacts the completion of specific activities that are not on the critical path, meaning the lost time can be made up without impacting the overall schedule. An example would be the re-trimming of a building interior, which is done in parallel with other finishing processes.

Excusable vs. inexcusable

As the name implies, an excusable delay is one over which the contractor has little or no control and is therefore not responsible for the financial fallout. This category includes circumstances entirely out of the contractor’s hands, like vandalism and major weather events or minor errors and omissions that are to be expected.

Inexcusable delays point directly to the contractor with no plausible reason or explanation. An example of an inexcusable delay is the hiring of unqualified subcontractors who then perform work incorrectly without proper vetting or license reviews by the general contractor.

Compensable vs. non-compensable

Compensable delays happen when the impacted party will be given more time or resources to complete their tasks. Excusable delays are almost always considered compensable, making the previous distinction important. The aforementioned weather event would certainly be compensable, while delays caused by mistakes or mismanagement by the contractor are likely to be non-compensable.

Legal Options for Construction Delay Claims

Once the type of delay has been properly assigned, the issue can be assessed from a legal perspective to determine if it represents a breach of contract or merits some other legal or financial action. This can result in one of several different courses of action.

1.   Concurrent delay

A concurrent delay occurs at the same time as another setback, such as a material shortage that overlaps a labor dispute. Concurrent delays also define other circumstances beyond the control of contractors, such as waiting for a previous contractor to complete their work or vacate the site. In either circumstance, valid concurrent construction delay claims are usually considered compensable.

2.   No damages for delay

This type of clause in a construction contract is used to protect the owner or client from additional charges by the contractor based on excusable delays. This includes delays caused by the client or any other external factors. “No damages” clauses typically provide contractors with more time, but not more money, to complete their assignments.

3.   Improper notice

This claim type refers to situations where delays are encountered, but the client is not notified in a timely manner. These cases can be difficult to resolve if the notification type(s) and time limits are not clearly stated in the contract. For contractors, it is always advisable to err on the side of caution and notify clients of any construction schedule delays immediately while providing documented evidence to explain the reasons for the setback.

4.   Time is of the essence

This clause runs somewhat counter to the trend of delays in construction being the norm rather than the exception. With a “time is of the essence” clause in place, no delay is considered either excusable or compensable, and the contractor may be considered in breach of the contract if their tasks are not completed by the original due date. Obviously, the likelihood of construction delays can make this clause unfavorable for contractors.

5.   Force majeure

Translated to “superior force,” a force majeure clause in a contract frees both parties from financial obligation when an unforeseen event such as a hurricane, fire, or pandemic impacts the schedule or prevents either party from fulfilling their obligations. To qualify under this designation, the critical and excusable delay must have been unforeseen, making it impossible to complete tasks on schedule.

How to Manage Construction Delays

For every force majeure driving up costs and pushing out completion dates, many other causes of construction delays are completely avoidable with the right strategies, tools, and processes in place.    

1.   Efficient time management and planning

Many project delays are simply the result of poor planning and schedule management. Evaluating resource availability carefully, buffering schedules to allow for some level of unforeseen circumstances, and regular progress tracking is among the tactics that prevent unrealistic or overly aggressive schedules from turning into delays.

2.   Clear communication between parties

Poor communication on the job site can lead to everything from errors and rework to construction hazards and conflicting subcontractor schedules. Transparent communication channels between all parties can keep misunderstandings and incomplete information from holding up progress unnecessarily.

3.   Being flexible and understanding

A proactive approach to delay analysis in construction projects that emphasizes collaboration and logic over finger-pointing and emotional responses is more effective in avoiding delays and limiting their impact when they occur. Construction analytics tools can be useful for exchanging ideas and solutions among stakeholders.

4.   Contingency plans

Construction contingencies are pre-established sums of money, based on a percentage of the overall budget, set aside to cover unforeseen circumstances. Well-planned and adequate contingencies soften the impact of delays by helping projects adapt to unplanned events with minimal schedule impact.

5.   Accurate estimates and takeoffs

When materials, labor, and other resources (and their costs) are projected accurately in the project’s early stages, it helps prevent delays due to shortages later. Software-based quantity takeoff and estimation practices ensure all information is up to date to avoid downstream cash flow issues or long waiting times for additional materials.

6.   Effective risk management

Construction risk management practices begin with thoroughly assessing all project risk factors, including schedule constraints, environmental issues, and design complexity. Many of these risk factors can lead directly to construction delays if they are not addressed. An effective risk management process helps prioritize these issues to minimize their impact.

7.   Build supplier partnerships

Suppliers are pivotal in avoiding project delays since missed shipments, incorrect materials, or poor material quality can easily derail project schedules. Strong supplier partnerships and construction procurement strategies help minimize material-related issues’ frequency and impact by improving response times and allowing for collaborative problem-solving.

8.   Utilize software tools

Construction software for schedule management, project tracking, takeoff and estimation, and procurement provide the visibility and reporting capabilities needed to keep setbacks to a minimum while providing an effective forum for stakeholder collaboration. BIM management software also improves outcomes by capturing issues like clashes or design weaknesses in the virtual realm.    

Final Thoughts   

No construction project is completely immune from delays and setbacks, no matter what tools and practices are deployed. Along with old-fashioned teamwork and discipline, software tools go a long way toward avoiding delays. RIB software solutions support these efforts with project—and job-focused tools designed to promote real-time collaboration, information accuracy, and risk mitigation.

To learn more about these powerful and versatile tools, get your demo today and begin your journey to next-level performance!